The photo shows a price tag for a men’s trousers at Go outdoors, where I work! The pricetag
explores behavioural economics as it is a clear example of framing bias, in the context of the
pricetag, where the way a price is framed influences a person’s perception of that price. The
way information is presented significantly impacts our decision-making processes, including
our judgments about the value or fairness of a price. One common example of framing bias
in pricing is the use of the “anchor” or reference point. An anchor is a starting point or
benchmark that individuals use to make judgments and comparisons. When the flyer
presents a higher original price (the anchor) alongside the discounted price, consumers
perceive the discounted price as a better deal, which makes the discounted price seem more
appealing and encourages more people to purchase. The sizing of the text is very clever in
the example as in small writing it says, “only with your members card,” which may be
deliberately placed like this as it will be skimmed over by many consumers, who in the end
will have to pay the extra money for the membership card, pumping more money into go
outdoors.
