Does your kid have a "ten dollar head"? | Nudge Newsletter


The Framing Effect

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"Does your kid have a ten-dollar head?"

That's what Bell Helmets asked parents in this newspaper ad.

It seems like a strange question until we understand the power of framing.

Let's look at a study on beer to explain.

In a study led by Donald Lichtenstein¹ from Colorado University, bar menus with descending price order increased average beer sales by 4%.

Framing the menu with high-priced options first made the mid-range prices seem like a better deal.

Some marketers know this instinctively.

Take this hilarious product display for condoms.

Richard Shotton writes in his latest book* that Bell cycle helmets do the same.

He says:

"The helmet was high-priced. Without a comparator, parents would naturally weigh it up versus other, cheaper cycle helmets. But framing it against sneakers changed that. Compared with the latest footwear styles, the cost of the helmet feels low. What parent would put more value on fashion than their child's life?"

The reference point you choose can dramatically change how a product’s value is perceived.

Cheers for reading — Phill

P.S. *This wonderful insight is taken from Richard Shotton's great book Hacking The Human Mind. It's really worth reading.

¹Suk, K., Lee, J., & Lichtenstein, D. R. (2012). The influence of price presentation order on consumer choice. Journal of Marketing Research, 49(5), 708-717.

As a behavioural science practitioner, I believe in the peak-end rule.

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