Price framing and customer decision making in e-commerce

Framing Effect and Consumer Protection
Intervention Consumer Protection

Intervention Description

The United Kingdom’s Office of Fair Trading aimed to understand how price framing affected consumer decision making. Students were asked to participate in a simulated shopping experiment on a computer. The way in which the price of products was displayed acted as the intervention. Customers who were shown ‘drip pricing’ (where small price increases are added to the initial price displayed) got the worst deals. Customers also made poor decisions when presented with time-limited offers.