TL;DR Customers don’t evaluate offers objectively. The framing effect shows that how you present prices, features, and outcomes shapes perception and choice more than the facts themselves. In marketing, framing is strategy.

The Myth

People believe they make rational, objective decisions based on facts alone—free from influence by how information is presented.

The Truth

How information is 'framed' significantly shapes our choices, often leading us to make different decisions even when the underlying facts are identical. This is known as the framing effect.

In marketing terms: pricing, positioning, messaging, and defaults don’t just describe value. They actively shape it.

The Research

Daniel Kahneman and Amos Tversky in the 1980s demonstrated that people respond differently to the same information depending on whether it's presented in terms of gains (e.g., "90% survive") or losses (e.g., "10% die").

In one study, people were more likely to choose a medical treatment when told it had a "90% survival rate" than when told it had a "10% mortality rate"—despite both statements describing the same outcome.

Some Examples 

  • Pricing & Promotions“Don’t lose $350 a year by wasting energy” outperforms “Save $350 a year” because losses feel more urgent than gains.
  • Plan & Tier Design A “Premium” plan anchored against a “Standard” plan converts better than presenting the same difference as a “$5 upgrade.” Labels create perceived value.
  • Discounts vs SurchargesA “cash discount” feels better than a “credit card surcharge,” even when the final price is identical. Loss frames trigger resistance.
  • SaaS Messaging "Avoid downtime and security breaches” often converts better than “Improve uptime and security,” especially for risk-averse buyers.

Implications

Framing shapes perceived value: Customers don’t buy features—they buy interpretations of outcomes. Framing determines whether something feels like a gain, a risk, or a loss avoided.

Loss frames are powerful—but risky: Fear and urgency can drive action, but overuse erodes trust and trains customers to expect pressure.

Defaults do heavy lifting: The option you present as “normal” or “recommended” becomes the path of least resistance.

Messaging isn’t neutral: Every headline, price label, comparison table, and CTA is already framing the decision—whether you intend it or not.

Closing thoughts

In short, framing isn’t just about wording—it’s a powerful psychological lever that shapes perception, emotion, and action.