The same objective business or career outcome can lead to disappointment or joy depending on how it’s framed as a success or failure. The way we frame something can even change our entrepreneur experiences directly.
The difference in labeling makes a difference in business, career and entrepreneurial decisions
Imagine that you are in the grocery store and you see a package of ground beef that’s labeled 90% lean. Immediately adjacent is a second package of ground beef from a different producer, that second package is labeled 10% fat. That difference in labeling, 90% lean versus 10% fat, shouldn’t affect consumer’s attitudes or purchasing decisions. But, it’s good to know the right frame if you are an entrepreneur and want to have more success in your business.
Those two labels just provide different business and marketing frames through which the same information is presented and this isn’t an abstract or unfamiliar business, entrepreneur or career decision. It’s a product for which shoppers have substantial experience and will form attitudes already, but framing does affect consumer attitudes.products described in the positive frame like 90% lean are seen as higher quality and more desirable for success.
Framing the same product in a different way actually changes how we experience, and this is good for business
In this case, emphasizing the leanness of the ground beef lead consumers to think that it will be less greasy, which is an important factor in the purchasing decisions. And, let’s take this a step further. Changing the descriptive frame alters how the product tastes. Yes! Participants in one business related experiment were first shown a label indicating either the leanness or the fat content of ground beef then they were given a small freshly cooked sample.
Everyone sampled the same ground beef so any differences in taste could only be attributed to what the label said. After they tasted the meat people who had read labels indicating leanness rated the meat as leaner of higher quality and is less greasy compared to people who had read about the fat content of the meat.
So framing the same product in a different way actually changes how we experience that product specifically it focuses our valuation on particular attributes the product leading those attributes to dominate judgments. As consumers, business people or entrepreneurs we should be attentive to such framing effects. We can mentally change the frame and change the desirability of a to be purchased product or of our experiences after purchasing.
Temporal framing for entrepreneurs and business people
Now something about to temporal framing, how the influence of time on our business and entrepreneur choices can change depending on how such business decision is framed. Suppose that you have as an entrepreneur or a career investor an investment savings bond that has now matured. If you withdraw it now you will receive $10,000, but if you allowed to remain invested for two more years you will receive $11,000.
I’ve chosen large values and long delays on purpose so this decision is a little bit more realistic the typical laboratory experiment. In business, career or entrepreneurial decisions like this people tend to be relatively impatient, they’d rather have less money now instead of waiting for more money later.
The decision scientist Elke Weber and her colleagues have argued that this impatience arises because people can easily bring to mind how they can use that money today. “If I had an extra thousand dollars right now I could pay bills get a new computer take the trip I’ve been putting off”.
It’s much harder to envision what you use money for in the future. You know that actually money for bills and expenses and trips but those are all abstract needs and they don’t come to mind without prompting. So money seems to be worth much less the future than it is in the present.