The Framing Effect - Marketing Implications

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Transcript

Hello, let's talk about the marketing implications of the framing effect. In this lecture, we'll discuss how to implement what you've learned to your advantage. You can influence purchase decisions by the way you frame your offers. experts in neural marketing, such as Roger Dooley have come to a conclusion that absolute numbers tend to have a much stronger impact on people. Consider the following situation and think of the option which sounds more appealing to you. The first option 90% of customers are satisfied with our service.

The second option, nine out of 10 customers are satisfied with our service. How can you apply this knowledge? Well, when you have to present negative information, use percentages for a smaller impact when you're presenting positive information, use real number absolute numbers for a higher impact. Another way to put the framing effect into work is by framing a statement or a question in the following way. And this is especially applicable when you ask for money. Let's say that you're the owner of a social media platform that costs for its customers $25 per month.

Basically, your application saves time. It is ideal for social media managers, and it can save up to two hours per day. Somewhere in your marketing copy, you can add that the cost of your service is 83 cents per day in it saves up to two hours. Doesn't it sound more appealing? It's one thing to say $25 per month in quite another 83 cents per day. So, break down the cost for the product in terms of pennies or dollars per day, when possible.

The opposite scenario can also be used to frame statements or questions instead of breaking down. This time, you can combine. And what I mean by that. If you want to sell something more expensive, such as let's say, a coffee machine for $500, you can tell your prospective buyers that they pay approximately 3000 for three years for Starbucks. And why three years? Well, let's say that this is the warranty period, or you can use one year or two years.

It's up to you and it depends on your product. I'm sure you can. You can make the analogy yourself when you said $3,000 see what what big of a contrast happens here. $500 for a coffee machine doesn't look that high of a price, right? So always frame your questions and statements in a way that you want to influence people. I've given you three scenarios.

Use absolute numbers versus percentages, break down the cost of a product and lastly combined prices in a way that would make your offer looks more appealing and more reasonable. Thank you for watching.

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