Theory 2: Framing

Constructs:
o Message framing - The context and approach used to present the intended message.
Messages can be framed as either positive or negative, i.e. loss or gain. Research
shows that while negatively framed information creates more influence on
consumers, positively framed information has an overall more favourable effect on
consumer decision making (Grewal et al, 1994). Research also suggests that low
relevant messages are better received semiotically, while high-relevant messages
have greater influence when presented semantically (Woodside & Singer, 1994).

o Presentation Order – The order in which the intended message is delivered in the
communication process. When the message is presented first it takes the form of a
primary, while messages presented last are classified as recency (Haugtvedt &
Wegener, 1994). Research shows that on average, when mixed information is
received a recency effect occurs when proposed with an immediate decision-making
process (Haugtvedt & Wegener, 1994). Therefore, an individual’s final judgement is
more heavily influenced by information received later in communication rather than
earlier, regardless of whether the information processing task is simple or complex
(Haugtvedt & Wegener, 1994).
o Source Credibility – The credibility and reliability of the source of the message. A
sources credibility is derived from their perceived trustworthiness and expertise in
the concerned matter (Dholakia & Sternthal, 1977). These characteristics then
heavily influence the persuasion effects of the decision-making process (Fiske &
Taylor, 1991). When source credibility is perceived to be low, consumers are more
likely to argue against message claims, whereas if source credibility is perceived to
be high, they are less likely to argue with claims and therefore more easily
influenced by the message (Grewal et al, 1994).

Propositions:
The way information is framed influences the individual’s final judgement of the message
(Buda & Zhang, 2000). While message framing, order of presentation, and source credibility
can affect the perception of information to a degree separately, when all three interact in
the communication of a single message, a greater result is achieved (Buda & Zhang, 2000).
Due to the niche market of luxury mega-yachts, Company XYZ’s targeted consumer pool will
be relatively small. In order to increase potential purchases, Company XYZ must first
increase this pool by attracting more consumers. By utilising all three constructs of framing
simultaneously, potential consumers attitude towards the product can be changed through
manipulating the way the message is received so that it is interpreted to the effect Company
XYZ has desired.
Logic:
Individuals’ cognitive processes are not uniform therefore, the way information is processed
and interpreted differs. Consumers are generally loss averse, therefore positive information
will be received more favourably than negative information (Buda & Zhang, 2000). Due to
this inherent aversion to loss, consumers will also seek the credibility of the message source
to determine the level of influence the information will have on them based on the
trustworthiness of the source’s knowledge (Grewal et al, 1994). Average memory retention
also results in most recently received information being recalled more readily when
decisions need to be made, therefore, information presented last in communication is more
effective over information presented earlier (Buda & Zhang, 2000).

Boundary Conditions/Assumptions:
In order for this theory to hold true to this particular situation it must be assumed that the
individual’s judgements and decisions can be influenced by the way in which information is
framed. It is also assumed that consumers are generally loss averse, rational and informed.
Most importantly it is assumed that Company XYZ can successfully moderate the effect of
the intended message through manipulation of message framing, order of presentation and
source credibility despite external influences. It should also be noted that this theory
decreases in relevancy as consumers become increasingly involved in the decision-making
process (Buda & Zhang, 2000).
Marketing Implications:
Through the use of the knowledge of how framing theory works and its impact on
consumers attitudes towards products, marketers can influence consumers perceptions of
their products. In the case of Company XYZ, because of the niche market of their products
we can assume a small pool of potential buyers, we can increase this pool by altering
consumers perceptions of their need of and the attractiveness of the product. By changing
the framing of the product appropriately we can manipulate consumers to process
information about specific products in a more favourable way (Buda & Zhang, 2000).

References:
Dholakia, R.R. and Sternthal, B. (1977), “Highly credible sources: persuasive facilitators or
persuasive liabilities?'', Journal of Consumer Research, Vol. 3, March, pp. 223-32.

Fiske, S.T. and Taylor, S.E. (1991), Social Cognition, McGraw-Hill, New York, NY

Grewal, D., Gotlieb, J. and Marmorstein, H. (1994), “The moderating effects of message
framing and source credibility on the price-perceived risk relationship'', Journal of Consumer
Research, Vol. 21, June, pp. 145-53

Haugtvedt, C.P. and Wegener, D.T. (1994), “Message order effects in persuasion: an attitude
strength perspective'', Journal of Consumer Research, Vol. 21, pp. 205-18.

Woodside, A.G. and Singer, A.E. (1994), “Social interaction effects in the framing of buying
decisions'', Psychology and Marketing, Vol. 11 No. 1, pp. 27-34.

Zhang, Y. and Buda, R. (1999), “The moderating effects of need for cognition responses to
positively versus negatively framed advertising messages'', Journal of Advertising