Which of the following statements is true of decision framing?
A) Consumers react more positively when marketers frame the cost of a product as a large one-time expense instead of as a series of small payments.
B) Consumers are more likely to choose a brand with negatively framed claims about a competitor when elaboration is high than when it is low.
C) Consumers are more willing to take risks with products when a choice is framed as avoiding a loss than one framed as acquiring a gain.
D) A product framed in the context of higher-priced options will be judged as being more expensive than one framed in the context of lower-priced options.
E) When the outcomes are equally positive, sellers feel better about not losing money while buyers feel better about achieving gains.

Question

Quizplus · Accepted Answer

This is the concept of loss aversion, where people are more likely to take risks to avoid losses than to achieve gains. This has been shown in various decision-making scenarios, including consumer choices. Option A is known as the payment framing effect and refers to the tendency of consumers to react more favorably to products that are framed as a series of small payments rather than as a one-time large expense. Option B refers to the elaboration likelihood model and suggests that consumers are more likely to be influenced by negatively framed claims about competitors when they are highly involved in the decision. Option D refers to the context effect, where a product's perceived value is influenced by the context in which it is presented, but it does not apply to decision framing. Option E refers to the concept of the zero-sum game and how it influences the perception of gains and losses, but it is not specific to decision framing.

Which of the Following Statements Is True of Decision Framing