99% pure, 99% fat free, and kills 99.99% of germs are the common advertisement messages given by different brands. Why the same brands does not use 1% impure, 1% fat, and 0.01 % germs survive?. Using the right kind message will induce consumers to buy product. Framing effect is the reason behind using the marketing messages like the ones mentioned above.

Cool mint fragrance toilet cleaner ads. Cleaner bobs kill germs inside toilet bowl. Vector realistic illustration. Horizontal banner.

Kills 99.9% of Bacteria – Source: https://previews.123rf.com

In 1979, Daniel Kahneman and Amos Tversky published a paper titled “Prospect Theory:An Analysis of Decision Under Risk”.(Also Tversky A., Kahneman D. (1985),Kahneman D. Tversky A.,(1983)). This paper investigated and questioned “expected utility theory” which is widely used in the area of economic decision making. Expected utility theory uses probabilities of the outcome and does not consider any other irrational factors of humans. To support their claim, authors refers to Allais Paradox which was proposed in the year 1953 by Maurice Allais. Continue reading

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