Do you prefer your yogurt with 10% fat or 90% fat-free? Should the label on your disinfectant say it kills 99% of germs, or that it only spares 1% of them? Marketers know which framing will result in more sales. This is called the framing effect: a cognitive bias where people decide on options based on whether they are presented in a positive or negative way.
Why does it matter? Well, the framing effect is considered one of the largest biases in decision making, particularly in important areas such as health care and financial decisions. Without knowing it, many of your decisions have been impacted by this cognitive bias over the years. Let’s have a look at how it works and how you can manage it.