I help entrepreneurs leapfrog over the typical potholes that derail most small businesses with inspiration, motivation, education, and support across a wide range of business topics drawn from over a decade of running my own business, teaching entrepreneurship for the City of New York, and coaching and consulting privately with dozens of women and minority small business owners. Honestly, why go it alone when help is an email away?
Have You Been Framed?
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,
Sharing is caring. Please pass this message on.
Your success is our strategy!
No longer want to receive my newsletter but don't want to miss my special offers and announcements? Click here.
To completely unsubscribe from all future communications, please opt out below.
Easily Said & Done
I help entrepreneurs leapfrog over the typical potholes that derail most small businesses with inspiration, motivation, education, and support across a wide range of business topics drawn from over a decade of running my own business, teaching entrepreneurship for the City of New York, and coaching and consulting privately with dozens of women and minority small business owners. Honestly, why go it alone when help is an email away?
I was planning to write one of those typical messages about getting back into a business mindset now that Labor Day is in the rearview and we’re heading into the busiest time of year for many of us. But, when I sit down to write, I don’t feel the usual back-to-school energy that’s typical for me during the first week of September. Instead, I’m reflecting on my mixed bag of a summer and wishing it weren’t, in everything but name, over. I had such momentum coming into the season and then life...
So, you're ready to bring someone in to help you with admin tasks, research, and more. For most business owners, hiring help is a big decision. It's scary giving up that sense of control and relying on somebody else to get things done and do them right. That's why I'm so glad to share this advice from Dianne Bennett, Founder of May I Help You Virtual Services, on finding the right Virtual Assistant (VA) for you. The first thing to understand is that, just like you, a VA is a business owner....
Hi Reader, Did you know that research shows men are more comfortable ordering a cocktail when they know what kind of glass the drink is served in? It's led some restaurants and bars to add images to their cocktail menus to give men the boost of confidence they need. When you think about it, it makes sense. Some men think it doesn't look manly to drink a fruity cocktail or one that comes in a glass associated with fruity cocktails. So rather than risk it, they'll go with what they know. Big...