Strategic framing to influence clients’ risky decisions

Kris De Jaegher*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

This paper develops a model of persuasive demand inducement in the expert–client relationship. The expert frames the decision on whether or not to buy expert services faced by a client with prospect-theoretic preferences, by making the client see this decision from the perspective of a particular reference point. When inducing a client to buy risky curative services, the expert should set a high reference point, and frame all outcomes as losses. When instead inducing a client to buy safe preventive services, as long as the client’s loss aversion is sufficiently high, the expert should set an intermediate reference point, framing high outcomes as gains and low outcomes as losses.

Original languageEnglish
Pages (from-to)437-462
JournalTheory and Decision
Volume86
Issue number3-4
DOIs
Publication statusPublished - 1 May 2019

Keywords

  • Demand inducement
  • Expert–client relationship
  • Framing
  • Prospect theory
  • Reference points

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