Price frames effect on consumer decision making
The way prices are presented (so-called price frames), as well as their levels, can affect competition and consumer welfare. This is because consumers take various ‘short-cuts’ when choosing between products and services. Price frames are used to inform those ‘short-cuts’.
In the third of our latest set of Insights: Price frames effect on consumer decision making we describe how assessing: (i) the prevalence of potentially misleading offers; and importantly (ii) their impact on consumer decision making can be important in relation to markets involving fast moving consumer goods (FMCG) using transaction data. We used a recent super-complaint by Which? to the CMA to motivate our approach. This Insight summarises our analysis.
