Adding a bonus item (such as a free pair of socks with the purchase of a pair of shoes) can lead to more sales than an equivalent small reduction in price due to a behavioral trait called
A) sunk cost fallacy.
B) overvaluing the present more than the future.
C) altruism.
D) framing bias.

Question

Quizplus · Accepted Answer

Framing bias explains how the way information is presented (or "framed") can influence decision-making and judgment. Offering a bonus item instead of a small price reduction changes the perceived value of the deal, making it more appealing even if the economic value is equivalent, due to the positive framing of receiving something "extra" or "free."

Adding a Bonus Item (Such as a Free Pair of Socks