I guess I’m doing a series on the behavioral economic tactics used to influence or change perceptions of price and value as this week we're diving into the Framing Effect.

You may recall that last week I discussed the Anchoring Effect and the week before I reviewed the Decoy Effect.

So, what is framing?

It’s when you actively impact people’s perception of value based on how you’re presenting information about what's on offer.

An example might be listing your turkey burgers as being ‘97% lean meat’ rather than ‘Only 3% fat.’

In this example, both packages of turkey burgers are exactly the same—97% lean meat and 3% fat.

However, in a side-by-side comparison, consumers are more likely to buy the package labeled '97% lean meat.'

When asked, they will tell you their preference is because '97% lean meat' is healthier than the 'Only 3% fat' alternative.

Our brains tell us there's a difference when, in fact, there isn't.

This is a form of cognitive bias that is surprisingly powerful and effective.

As you can see, framing requires a point of reference.

We need to know something about our audience and what they actually see as positive versus negative—a gain versus a loss.

For our turkey burger shoppers, it's their preference for healthy options as well as the negative connotation associated with fat in our modern food culture.

And that negative connotation is important. Because framing plays upon our desire to avoid losses or what is known as loss aversion.

(More on that next week.)

For now, what's important to understand is that framing is accomplished using a variety of subtle and more overt tactics, including:

• Tonally through vocal styles and tones of voice.
• Linguistically through language and word choices.
• Visually through colors, images, and even font styles and sizes.

You might be thinking, "Lauren, this sounds like marketing not pricing."

If so, bravo, you're absolutely right!

Framing is very much connected to messaging, but here's how it relates to pricing.

Say we list our two packages of turkey burgers for different prices, with our 97% lean meat option costing one dollar more.

Surely folks will buy the cheaper option, especially since there's really no difference between the two.

But, no, a good number will pay the extra money.

And if we add a sign above the 97% lean meat option that says, "Only $1 more," even more people will pay that higher price.

Like the other 'effects' in this series, framing works whether you sell products or service, and you're probably doing it without even realizing.

While, no doubt framing can be used to trick us into spending more or consider one option superior to another when the reality is otherwise, I'm not placing a value judgment on it.

When employed 'for good', framing can nudge us toward better options or smarter decisions by leveraging our cognitive bias to support positive action and impact.

Need a little help aligning your messaging, pricing, and sales strategies? Let's talk.

Until next week,

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