GROWTH DEVELOPMENT CHILD
COGNITION AND EMOTIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Regular prices may be marked up dramatically in order for sales to seem more appealing
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Poor products may be presented to be higher quality than they actually are
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Consumers are more likely to purchase things that are presented as “healthy” or “natural”
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False statistics about products are presented in order to convince consumers to purchase them
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Detailed explanation-1: -When making decisions, people will be influenced by the different semantic descriptions of the same issue, and have different risk preferences, which is called the framing effect indicating that people make decisions based on the potential value of losses and gains rather than the final outcome.
Detailed explanation-2: -In behavioral economics, framing effect refers to the principle that information is not static, but fluid based on how, when and where it is communicated. In other words, people’s decisions tend to be affected by the way in which the choices are framed through copywriting, imagery, tone, pricing and placement.
Detailed explanation-3: -Framing bias refers to our propensity to be influenced by the manner in which information is presented. A salesperson promoting a product would much rather claim ‘85% of customers were satisfied with the product’ than admit ‘15% of customers were dissatisfied’.