The Duality of Desire: How Brands Use Gain vs Loss Framing to Influence Customer Behavior

Framing Bias — The art of presenting information, or “framing,” significantly influences how individuals perceive and act upon it. This phenomenon is particularly prominent in advertising and marketing, where companies often use different framing techniques to sway consumer behaviour. Gain vs Loss is one such framing technique where a problem or choice is presented or framed in terms of potential gains or losses. For example, presenting a situation as a potential gain (e.g. “you have the opportunity to earn an extra $100”) may elicit a more favourable response than presenting the same situation as a potential loss (e.g. “you could lose $100”). This effect can have a significant impact on decision-making, particularly when it comes to risk aversion and motivation.

It’s important to note that framing bias is a mental shortcut our brain takes, and brands have capitalized on this phenomenon to manipulate consumer perception. This article will use examples of the power of gain and loss framing in marketing and advertising.