{"id":25506,"date":"2020-02-06T09:15:33","date_gmt":"2020-02-06T14:15:33","guid":{"rendered":"https:\/\/beyondphilosophy.com\/?p=25506"},"modified":"2020-02-27T19:09:36","modified_gmt":"2020-02-28T00:09:36","slug":"framing-effect-discover-powerful-marketing-technique","status":"publish","type":"post","link":"https:\/\/beyondphilosophy.com\/framing-effect-discover-powerful-marketing-technique\/","title":{"rendered":"Framing Effects &#8211; Discover This Powerful Marketing Technique To Gain Growth"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">How you present information often influences your audience to perceive it differently. In marketing, sometimes how you present the facts takes advantage of the information in a way that shouldn&#8217;t matter when you think about it rationally. Nonetheless, it does, and done right can yield positive customer-driven growth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We discussed Framing Effects in a recent podcast. These influences often have surprising effects on customer behavior, usually in ways you didn\u2019t expect about things you didn\u2019t think mattered. Therefore, not paying attention to this detail can be disastrous for your business. It would be best for your bottom line to be deliberate about how you present information to your customers.\u00a0<\/span><\/p>\n<p><!--more--><\/p>\n<p><span style=\"font-weight: 400;\">Economists examine how presentation affects behavior by running experiments that are essentially games. The researchers explain the game rules to the participants, which usually involve a choice. The participants play, typically competing for a payout. Moreover, these games are usually fun, so much so that sometimes the entertainment industry makes them into a game show.\u00a0Golden Shot, a game show from long ago that aired in the UK is an example of a game that was once an experiment but then turned into a game show.\u00a0<\/span><\/p>\n<p><iframe loading=\"lazy\"  title=\"The Golden Shot with the reigning champion\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/mbML-4ig5eU?feature=oembed\"  allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">In another game researchers ran, contestants had to choose whether to cooperate with the other player or to defect and go their own way. The choices the contestants made affected the amount of their payout in good and bad ways:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If both players cooperated, then both got the highest payout in total.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If you defected and the other person chose to cooperate, then you ended up with an excellent payoff for yourself, and the other guy won nothing.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If you both chose to defect, then you both won very little.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">So, it was a trust game. How much do you trust the other person to do the right thing and cooperate with you versus try to cheat on you and get the higher payout?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Everyone played the same game and understood the rules the same way. The only difference was the name. Some people played \u201cThe Community Game,\u201d and some people played \u201cThe Wall Street Game.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When it was called The Community Game, people were nearly twice as likely to cooperate than when it was the Wall Street Game. When playing The Wall Street Game, people put on their competitive hats and defected like crazy, and nobody wanted to cooperate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This situation, where the name of the game influences people\u2019s behavior, is an example of Framing Effects.\u00a0The scientific literature defines Framing Effects as giving people a set of facts that do not change, but changing something around it to position it a different way.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is helpful to think of framing a picture here. When you have a painting, the frame you use makes a significant difference in how it looks. Different structures bring out various aspects of the same picture. For example, specific colors may pop more in one frame over another, or the subject can seem more valuable than when in another type. In other words, if you change the frame and you change the painting.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Framing Information Does That Too.\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In another article, I shared the information that Forrester, a global research company, predicted that 2020 would be the year that 25 percent of <a href=\"https:\/\/beyondphilosophy.com\/customer-experience\/\">Customer Experience<\/a> professionals would lose their jobs because of a lack of results they could demonstrate. It is, without a doubt, a gloomy headline that grabs your attention\u2014especially if you work in Customer Experience.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, does it sound quite as ominous when you position it as 75 percent of Customer Experience professionals will keep their jobs in 2020? In my opinion, it doesn\u2019t, even though it is saying the same thing.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This example is a gain-loss framing. One of the effects of gain-loss framing is that it changes our risk perceptions, our risk preferences. It also makes things seem more or less attractive.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another example of framing effects is what is known as a Status Quo Bias or Default Framing. These are the \u201copt-in or opt-out?\u201d frames made famous by <\/span><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.ted.com\/talks\/dan_ariely_are_we_in_control_of_our_own_decisions?utm_campaign=tedspread&amp;utm_medium=referral&amp;utm_source=tedcomshare\" rel=\"nofollow noopener\" target=\"_blank\">Dan Ariely\u2019s TED Talk on decisions<\/a> <\/span><span style=\"font-weight: 400;\">and Dr. Richard Thaler\u2019s book <\/span><a href=\"https:\/\/www.amazon.com\/Nudge-Improving-Decisions-Health-Happiness\/dp\/014311526X\" rel=\"nofollow noopener\" target=\"_blank\"><i><span style=\"font-weight: 400;\">Nudge<\/span><\/i><\/a><span style=\"font-weight: 400;\">. In this type of framing, you communicate the norm or the best choice as the default.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, these Default frames were used with organ donation. The number of organ donors increased when donating organs became the default choice. In other words, instead of opting-in to organ donation, you had to opt-out of organ donation. Being pro organ donation was the choice you made by doing nothing and doing nothing is something we all like to do (on forms, anyway).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, using this Default frame said to people, \u201cwe assume that you want to donate your organs, but if you don&#8217;t want to, you can check this box and opt-out.\u201d Organ donation is the choice perceived of as more attractive or better than not donating. It was a minor change in framing that led to major changes in the results.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you are influenced by framing, it isn\u2019t because you are dumb. It&#8217;s not that following these routes with your choices is something that only an idiot would fall for or believe. We are all susceptible to it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One experiment demonstrated that doctors were also affected by framing effects. Researchers gave them a case file on a hypothetical patient and an assortment of treatment protocols the doctor could choose that included different drug regimens and surgery.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In some of the case files, the surgical option was positioned as a 95 percent survival rate. The other was stated as a five percent mortality rate. The doctors who read about the ninety-five percent survival rate were more likely to recommend the surgery than those with the five percent mortality rate.\u00a0<\/span><\/p>\n<h2><b>What Does This Mean to You?<\/b><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Framing Effects have a strong influence on <a href=\"https:\/\/beyondphilosophy.com\/pandemic-behavior-explained-the-good-and-the-bad\/\">human behavior<\/a>. So, if framing effects are real and all people are susceptible to them, how can we use this information to market your products and grow your business?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First, if you&#8217;re interested in using behavioral science to promote growth or to change your Customer Experience, I offer a word of caution. Just like there are opportunities for Framing Effects to work in our favor, there are also opportunities for framing effects to blow up in our face completely. You must be careful and pay attention to the details of your framing tactics.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When it comes to Framing Effects, you should understand that information that shouldn&#8217;t matter sometimes does. For example, when you have a product that costs less than another one, your customers can do the arithmetic. However, they might not have made the leap that with those savings on the lower-priced item, they could buy something else, related or not. So, if you demonstrate ways that customers can use their savings from buying your product to buy a companion product they also need, you might have more success in moving them to a decision.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, as I mentioned, customers can do the math. They know one price is lower than another. So, it seems like it would be unnecessary to share this bit of news about additional purchases with customers. However, it is necessary, and it does make a difference in customer behavior.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Likewise, it shouldn\u2019t matter if organ donation was an opt-in or opt-out option. People who want to be organ donors should sign up no matter how you frame the question. But they don\u2019t, and clearly, the opt-out option is more successful than the opt-in.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Also, when it comes to Framing Effects, you should test it. Trying multiple options will help you determine what should matter and what shouldn\u2019t in your offering. We screen <\/span><a href=\"https:\/\/beyondphilosophy.com\/?s=Sign+up+for+newsletter\"><span style=\"font-weight: 400;\">our monthly email\u00a0subject lines<\/span><\/a><span style=\"font-weight: 400;\"> to see which get the highest engagement rate with our subscribers. There is a significant difference based on how we position it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From a rational perspective, how you ask a question shouldn\u2019t affect the answer. Also, how you position a fact shouldn\u2019t change how people perceive the information.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, Framing Effects do not produce a rational response. Just like how you frame a picture changes how it looks, how you present information has a significant effect on how you communicate. Therefore, you must understand how to frame your communications to yield the customer-driven growth you want and need\u2014especially if you&#8217;re going to be in the 75 percent of Customer Experience professionals that keep their jobs this year.\u00a0<\/span><\/p>\n<p><b><i>To hear more about <strong>This Powerful Marketing Technique to Gain Growth<\/strong> in more detail, <a href=\"https:\/\/beyondphilosophy.com\/discover-this-powerful-marketing-technique-to-gain-growth\/\">listen to the complete podcast here.\u00a0<\/a><\/i><\/b><\/p>\n<p><i><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-20286 alignleft\" src=\"https:\/\/beyondphilosophy.com\/wp-content\/uploads\/2018\/07\/emotional-sigV1-300x235-300x235.png\" alt=\"\" width=\"171\" height=\"134\" srcset=\"https:\/\/beyondphilosophy.com\/wp-content\/uploads\/2018\/07\/emotional-sigV1-300x235.png 300w, https:\/\/beyondphilosophy.com\/wp-content\/uploads\/2018\/07\/emotional-sigV1-300x235-200x157.png 200w\" sizes=\"auto, (max-width: 171px) 100vw, 171px\" \/>What customers say they want and what they really want are often different things. It is vital to know what drives value for your organization. Our Emotional Signature research can tell you where you are compared to other organizations and what to focus on to drive value for your customers. To learn more, <\/span><\/i><a href=\"https:\/\/beyondphilosophy.com\/cx-services\/emotional-signature\/\"><i><span style=\"font-weight: 400;\">please click here<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">.\u00a0<\/span><\/i><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"http:\/\/beyondphilosophy.com\/our-team\/colin-shaw\/?utm_source=linkedin&amp;utm_medium=pulse&amp;utm_campaign=n2n\"><b><i>Colin Shaw<\/i><\/b><\/a><b><i>\u00a0is the founder and CEO of<\/i><\/b><a href=\"http:\/\/bit.ly\/189lvWr\" rel=\"nofollow noopener\" target=\"_blank\"><b><i>\u00a0Beyond Philosophy<\/i><\/b><\/a><b><i>, one of the world\u2019s leading Customer experience consultancy &amp; training organizations. Colin is an international author of<\/i><\/b><a href=\"http:\/\/bit.ly\/IrQ8uB\" rel=\"nofollow noopener\" target=\"_blank\"><b><i>\u00a0six bestselling books<\/i><\/b><\/a><b><i>\u00a0and an engaging keynote speaker.<\/i><\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">Follow Colin Shaw on Twitter\u00a0<\/span><\/i><a href=\"http:\/\/bit.ly\/1hxF3H7\" rel=\"nofollow noopener\" target=\"_blank\"><i><span style=\"font-weight: 400;\">@ColinShaw_CX<\/span><\/i><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How you present information often influences your audience to perceive it differently. In marketing, sometimes how you present the facts takes advantage of the information in a way that shouldn&#8217;t matter when you think about it rationally. Nonetheless, it does, and done right can yield positive customer-driven growth. We discussed Framing Effects in a recent [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":25511,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[97],"tags":[],"class_list":["post-25506","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs"],"_links":{"self":[{"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/posts\/25506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/comments?post=25506"}],"version-history":[{"count":0,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/posts\/25506\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/media\/25511"}],"wp:attachment":[{"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/media?parent=25506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/categories?post=25506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/tags?post=25506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}