ABSTRACT

Title:                         Lucrative deals

How service offers and its clients is forms by Optional Framing                

Level:                       Bachelor, Business Administration

Author:                     Gabriel Krogius, Mikaela Sörensen

Supervisor:              Jonas Kågström, department of economics

Date:                         2013, August

Introduction:           That the human mind may be directed by how an offer is designed is not news. However, what is new in the following thesis is whether a person is affected in the case of a service rather than, as previously research, a physical product. Does a person find it harder to separate with something rather than to add an option?

Aim:                          The aim for this thesis is to examine how Optional Framing has affection on service offerings/companies, and in this case on real estate brokerage services. Is it, as earlier, when the human can form her own offer, the final price ends up higher when she is about to add options than removing them?

Method:                    The thesis emanates to achieve earlier results where the difference in this case is that our thesis is targeting service offerings. It applies through a positivistic deductive method. The empirical data is collected from a quantitative sample of survey answers, where one part of the groups is faced to remove options from a deluxe-offer and the other part of the group is about to add options to a standard-offer. The survey was created with episodic support from a sample of interviews with active real estate agents.

Discussion:               The thesis shows that earlier results approve within service companies and its offers, in this case real estate brokerage. We can interpret that the human mind is directed through Optional Framing and that the deluxe-offer ends with a higher price and more options to it than the standard-offer. The correlation analysis shows us connection between some of the offers services that can benefit real estate brokerage in the future.

Future research:     We hope that foundations have been created for future research that can lead on to further understanding about the customers view on real estate brokerage services and how to make them more attractive.

Contribution:           Real estate brokerage can benefit from the results in this thesis where they further can implement the work from comparison of theory and empirical. 

Key words:              Loss Aversion, The Endowment Effect, Status Quo Bias and also Framing/Optional Framing.