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What is Meant by Framing Effect – Causes & Examples

Published by at June 28th, 2023 , Revised On July 23, 2024

Do you purchase products and services after watching related advertisements? If so, then it means you are a potential victim of the framing effect. People usually make daily life decisions based on how information is presented to them.

Businesses efficiently use the framing effect to successfully launch their marketing campaigns and to compel their prospective customers to buy their products and services. It doesn’t really matter what is being communicated. The only thing that matters is how it is communicated.

However, if the framing effect is used to present specific information to the researchers, it can significantly cause research bias in the research process.

What is the Framing Effect?

By understanding the framing effect, you can efficiently know how you can assess the information according to its authenticity and validity rather than its presentation. Facts and objective information don’t have any value according to the framing effect.

Framing Effect Definition

In psychology, the framing effect is a type of cognitive bias that refers to people’s decision-making, particularly how it’s presented to them or “framed.” It causes an error when evaluating a particular situation.

The framing effect takes away the power of critical and analytical thinking from the people. If they critically assess information when presented, they can efficiently avoid the framing effect.

Profit and Loss Case

For instance, if someone is allowed to choose between two options of profit and loss, they will ultimately select the profit even if both have the same results. If the loss is presented as a profit, they would happily choose it as a profitable option.

Framing Effect Example

Imagine a multinational company asking the general public to invest in and purchase their shares. To impact the decisions of investors, they will show two options in front of them such as:

  • There’s an 80% chance of an increase in the prices of shares
  • There’s a 20% chance of a decrease in the prices of shares

As the second option indicates loss, most people will not be ready to invest after seeing this option. The first option suggests an 80% chance of success, so people are more likely to choose this option when it’s presented.

This is how marketers use the framing effect to impact the buying decisions of people.

Causes of Framing Effect

The framing effect occurs when a human brain goes through various mental stages when faced with a situation in its decision-making. However, the causes of the framing effect are given as follows:

  • Method of Presentation

The framing effect is significantly caused depending on the method by which the information is presented. Slight changes in the presentation methods highly affect the decisions of people. It depends upon whether the information is certain or probable.

For example, imagine a car dealing company asking customers to purchase a particular vehicle. They present two options in front of customers such as:

  • Get £1500 on the purchase of the car
  • Get a 5% discount on the purchase of the car

People will more likely choose option one because, in that option, there’s a certainty of achieving profit no matter how much the second option can be profitable.

  • Inefficiency to Make Instant Decisions

People are inefficient in processing and critically thinking about the information just presented to them. This inefficiency of making decisions significantly leads to the framing effect. Instead of exploring other aspects of information, people only prefer the information that is instantly present in front of them.

For example, a shoe store offers a “buy one, get one free” offer. Most people will be inefficient in evaluating the whole scenario. They will think of it as a profitable choice. They will not be highly conscious of the quality and durability of shoes.

  • Emotional Clouding

People also make their decisions significantly according to their emotions (affect heuristic). When specific information is presented in a way to fulfil the emotional appeal of the people, there’s a high chance that they will change their preference from a rational choice to an emotional choice.

For example, imagine an insurance company offering material insurance to its customers, “Insure your home with XYZ Insurance”. Most people will ignore the information they initially presented and won’t be interested in buying that insurance.

When the same company offers life insurance by presenting “We XYZ company wants you to live longer”, people will be emotionally moved by this message and might purchase it.

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Essential Tips to Avoid Framing Effect

The framing effect can be avoided by following different tips:

Tip 1: Increase Awareness

People can efficiently avoid the framing effect by increasing their awareness about it and other cognitive biases. When you thoroughly understand the framing effect, then you can efficiently avoid this effect.

Increasing your awareness related to the framing effect will help you to enhance your critical thinking as well as rational decision-making.

Tip 2: Take Some Time to Think Twice

The framing effect compels people to make hasty decisions. You should take some time and thoroughly understand the situation to assess whether this is real or framed. It will significantly help you to make rational decisions and reduce the effects of the framing effect.

Thinking twice will enable you to explore more options that could be more beneficial as compared to the presented one.

Tip 3: Imagine Different Frames

When a particular piece of information is presented to you, you should imagine it in various frames. You will get to know if this frame benefits you or if it is just a “frame” to compel you to make a decision.

By doing this, you can efficiently understand what is right and what is wrong, what is hidden and what is revealed.

Tip 4: Gather Feedback

People should gather necessary feedback from multiple sources related to the information presented. It is very important to know about the perspectives and experiences of others.

By knowing the perspectives of others, you can develop a deep understanding of the framing effect; then you can successfully avoid it.

Examples of Framing Effect

These examples about the framing effect will help you to develop a better understanding of this concept:

Example 1: Framing Effect in Politics

Politicians often use framing effects in their political campaigns to generate a significant lead. They elaborate on an issue by talking about the advantages of their policies and negatively altering the image of their opponents.

By efficient framing effect, politicians change the public perception of them and influence their voting decisions.

Example 2: Framing Effect in Healthcare

Imagine a pharmaceutical company making a vaccine to eradicate a certain virus. They can assess and influence the perspective of people by presenting them with two options:

  • The vaccine is effective for 70% of people
  • The Vaccine is not effective for 30% of people

People will always prefer gains over losses. They are more likely to choose the first option with 70% effectiveness.

Example 3: Framing Effect in Marketing

Marketers efficiently use the framing effect in the marketing of products and services. They shape the perceptions and buying decisions of their customers. Imagine an ABC snacks company offers their customers to choose between these options:

  • The product is 80% fat-free
  • The product has 20% fat

Now, both the options are the same. But, people will be more likely to choose the option of an 80% fat-free product because an 80% fat-free product seems less risky.

Frequently Asked Questions

In psychology, the framing effect is the tendency of people to make decisions based on the way information is presented to them. 

In framing effect, it doesn’t matter to the people what is presented to them. Actually, they focus more on how it is being presented to them. This mind-turning presentation causes an error in evaluating the situation thoroughly. This is how the framing effect influences decision-making.

By properly understanding the concept of the framing effect, anyone can efficiently avoid the framing effect. However, there are certain tips to avoid the framing effect:

  • Increasing your awareness
  • Considering different frames
  • Thinking Twice

About Alvin Nicolas

Avatar for Alvin NicolasNicolas has a master's degree in literature and a PhD degree in statistics. He is a content manager at ResearchProspect. He loves to write, cook and run. Nicolas is passionate about helping students at all levels.