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• Framing effect

The way information is presented affects how users make decisions. Our choices are affected by context and the relation to available comparisons. In other words, how options are framed affects our choices.

Sometimes companies create a new option that’s easy to discard. This option acts as a decoy and helps in choosing the desired package.

When presented with two package options costing £36.50 and £31.50, no difference in the package will be found. And hence decision-making will be complex. However, when another package costing £57.99 is introduced, most people will choose package 2 at £36.50.

References:

https://en.wikipedia.org/wiki/Framing_effect_(psychology)

https://thedecisionlab.com/biases/framing-effect