Opportunity Costs
The economic principle that explains why choosing one option means giving up another.
What is opportunity cost?
This effect occurs when the same information leads to different decisions based on presentation.
What is the framing effect?
A business strategy that highlights what consumers lose by not purchasing.
What is opportunity cost framing?
The concept that says we are more affected by losses than gains.
negativity bias
A type of framing that emphasizes benefits or gains.
What is positive framing?
99% germs killed versus 1% of germs survive
What is positive vs negative framing?
Retailers that benefit the most from opportunity cost framing.
What is a company that sells cheaper/ value oriented products?
A type of framing that emphasizes losses or negative outcomes.
What is negative framing (or loss framing)?
Name any other concept we have learned in this class and give a brief explanation.
What is loss aversion, coercion, manipulation, defaults etc?