3 June 2015

Buy it! 3% Pure Fat! Classic Framing Example

The Framing Effect is probably the best know implication of loss aversion. A piece of information can be framed either as a gain or as a loss by manipulating the reference point.

In this case, the ham is presented as 97% fat free which implies that the reference point is 100% pure fat. Thus having it 97% fat free seems like a gain.

However, the same information could be framed as 3% pure fat, implying that the reference point is 0% fat. Having the information framed as 3% pure fat would make it feel like a loss.

Naturally, (most) people are more willing to buy something that is 97% Fat Free than they are willing to buy something that is 3% Pure Fat. 

Personal note: Before moving to the USA, I had only heard about this framing, never saw it with my own eyes...

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