IDEAS home Printed from https://ideas.repec.org/a/mup/actaun/actaun_2018066051267.html
   My bibliography  Save this article

Marketing Implications of Framing in the Decision-Making

Author

Listed:
  • Peter Gál

    (Department of Strategy and Entrepreneurship, Faculty of Management, Comenius University in Bratislava, Odbojárov 10, 820 05 Bratislava, Slovakia)

Abstract

Framing is a psychological concept closely related with decision-making. It says, that the way the information is served to the recipients, affects their opinion about a certain issue and, consequently, their decisions. Frame presents perception of the reality, since the limits of rationality often don't allow people to capture the reality in its complexity. Framing is manifested in several ways. The first relates to the starting point from which the reality is perceived. This dimension causes that people perceive differently the description of decision options formulated in terms of gains (positive frame) or losses (negative frame). The second dimension relates to the size or the width of the frame, i.e. whether the reality is seen from a wider or a narrower perspective. The aim of this study was to examine the impact of framing on the decision-making. The framing effect was studied by the analysis of answers to three problems, which were part of a broader questionnaire survey. The questionnaire was inspired or compiled from similar researches. The sample was 176 graduate university students (41 % men) of management major. The basic descriptive statistics and independent samples t-test were used for it. The results proved that the way the problem was framed to the respondents determined the outcomes of their decision-making. The implications both for the overall managerial decision-making and more specifically for the marketing practice are presented as well.

Suggested Citation

  • Peter Gál, 2018. "Marketing Implications of Framing in the Decision-Making," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 66(5), pages 1267-1273.
    • Handle: RePEc:mup:actaun:actaun_2018066051267
    DOI: 10.11118/actaun201866051267
    as

    Download full text from publisher

    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201866051267.html
    Download Restriction: free of charge
    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201866051267.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.11118/actaun201866051267?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:pri:cepsud:125krueger is not listed on IDEAS
    2. Richard H. Thaler, 2008. "Mental Accounting and Consumer Choice," Marketing Science, INFORMS, vol. 27(1), pages 15-25, 01-02.
    3. Daniel Kahneman & Alan B. Krueger & David Schkade & Norbert Schwarz & Arthur A. Stone, 2006. "Would You Be Happier If You Were Richer? A Focusing Illusion," Working Papers 77, Princeton University, Department of Economics, Center for Economic Policy Studies..
    4. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    5. Ganzach, Yoav & Karsahi, Nili, 1995. "Message framing and buying behavior: A field experiment," Journal of Business Research, Elsevier, vol. 32(1), pages 11-17, January.
    6. Gary E. Bolton & Axel Ockenfels & Ulrich W. Thonemann, 2012. "Managers and Students as Newsvendors," Management Science, INFORMS, vol. 58(12), pages 2225-2233, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Becker-Peth & Elena Katok & Ulrich W. Thonemann, 2013. "Designing Buyback Contracts for Irrational But Predictable Newsvendors," Management Science, INFORMS, vol. 59(8), pages 1800-1816, August.
    2. Levin, Irwin P. & Schneider, Sandra L. & Gaeth, Gary J., 1998. "All Frames Are Not Created Equal: A Typology and Critical Analysis of Framing Effects," Organizational Behavior and Human Decision Processes, Elsevier, vol. 76(2), pages 149-188, November.
    3. Shan Li & Kay‐Yut Chen, 2020. "The Commitment Conundrum of Inventory Sharing," Production and Operations Management, Production and Operations Management Society, vol. 29(2), pages 353-370, February.
    4. Heribert Gierl & Roland Helm & Stefan Stumpp, 2001. "Wertfunktion der Prospect-Theorie, Produktpräferenzen und Folgerungen für das Marketing," Schmalenbach Journal of Business Research, Springer, vol. 53(6), pages 559-588, September.
    5. Coker, Brent & Nagpal, Anish, 2013. "Building-Up versus Paring-Down: Consumer Responses to Recommendations When Customizing," Journal of Retailing, Elsevier, vol. 89(2), pages 190-206.
    6. Berman, Jonathan Z. & Bhattacharjee, Amit & Small, Deborah A. & Zauberman, Gal, 2020. "Passing the buck to the wealthier: Reference-dependent standards of generosity," Organizational Behavior and Human Decision Processes, Elsevier, vol. 157(C), pages 46-56.
    7. Cheng, Yin-Hui & Yen, HsiuJu Rebecca & Chuang, Shih-Chieh & Chang, Chia-Jung, 2013. "Product option framing under the influence of a promotion versus prevention focus," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 402-413.
    8. Becker-Peth, Michael & Thonemann, Ulrich W., 2016. "Reference points in revenue sharing contracts—How to design optimal supply chain contracts," European Journal of Operational Research, Elsevier, vol. 249(3), pages 1033-1049.
    9. Kalakbandi, Vinay Kumar, 2018. "Managing the misbehaving retailer under demand uncertainty and imperfect information," European Journal of Operational Research, Elsevier, vol. 269(3), pages 939-954.
    10. Joyita Banerji & Kaushik Kundu & Parveen Ahmed Alam, 2023. "The Impact of Behavioral Biases on Individuals’ Financial Choices under Uncertainty: An Empirical Approach," Business Perspectives and Research, , vol. 11(3), pages 401-424, September.
    11. repec:oup:qjecon:v:128:y:2012:i:1:p:53-104 is not listed on IDEAS
    12. Tobias Stangl & Ulrich W. Thonemann, 2017. "Equivalent Inventory Metrics: A Behavioral Perspective," Manufacturing & Service Operations Management, INFORMS, vol. 19(3), pages 472-488, July.
    13. Chen, Mingyang & Zhao, Daozhi & Gong, Yeming & Hong, Zhaofu, 2021. "Reference-dependent preferences in the on-demand service newsvendor with self-scheduling capacity," International Journal of Production Economics, Elsevier, vol. 234(C).
    14. Kim, Joonkyung & Zhao, Min & Soman, Dilip, 2023. "Converging vs diverging: The effect of visual representation of goal structure on financial decisions," International Journal of Research in Marketing, Elsevier, vol. 40(2), pages 362-377.
    15. Kristien Werck & Bruno Heyndels & Benny Geys, 2008. "The impact of ‘central places’ on spatial spending patterns: evidence from Flemish local government cultural expenditures," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 32(1), pages 35-58, March.
    16. Marianne Bertrand & Dean S. Karlan & Sendhil Mullainathan & Eldar Shafir & Jonathan Zinman, 2005. "What's Psychology Worth? A Field Experiment in the Consumer Credit Market," Working Papers 918, Economic Growth Center, Yale University.
    17. Dipankar Chakravarti & Atanu Sinha & Jaewhan Kim, 2005. "Choice Research: A Wealth of Perspectives," Marketing Letters, Springer, vol. 16(3), pages 173-182, December.
    18. Martin Kukuk & Stefan Winter, 2008. "An Alternative Explanation of the Favorite-Longshot Bias," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 2(2), pages 79-96, September.
    19. Moshe Levy & Haim Levy, 2013. "Prospect Theory: Much Ado About Nothing?," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 7, pages 129-144, World Scientific Publishing Co. Pte. Ltd..
    20. Oliveira-Castro, Jorge M., 2003. "Effects of base price upon search behavior of consumers in a supermarket: An operant analysis," Journal of Economic Psychology, Elsevier, vol. 24(5), pages 637-652, October.
    21. White, Tiffany Barnett & Novak, Thomas P. & Hoffman, Donna L., 2014. "No Strings Attached: When Giving It Away Versus Making Them Pay Reduces Consumer Information Disclosure," Journal of Interactive Marketing, Elsevier, vol. 28(3), pages 184-195.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mup:actaun:actaun_2018066051267. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://mendelu.cz/en/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.