The Framing Effect in Sales

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The Decoy Effect occurs when customers change their preference between two options after being presented with a third, strategically placed “decoy” option. Businesses use this to:

Enhance Perceived Value: Presenting a slightly more expensive version makes the main offer look more attractive.

Drive Up Sales: Offering a middle-tier product nudges customers toward premium choices.

Encourage Upselling: Showing “good, better, best” tiers can shift decisions toward the optimal price point.

37.
How information is presented influences decision-making. Sellers use framing strategies such as:

Positive vs. Negative Framing: Saying “90% of customers shop love this product” instead of “10% dislike it” enhances appeal.

Comparative Framing: Highlighting advantages over competitors shifts perception in favor of a brand.

Scarcity Framing: Reinforcing urgency with statements like “Only available today!” motivates action.

38. The Science Behind the Endowment Effect
The Endowment Effect refers to how people overvalue something they own compared to something they do not. Sellers use this to:

Provide Free Trials: Customers who experience a product firsthand feel more attached.

Offer Customization: Making a product feel unique to the buyer increases perceived value.