The silver lining effect, making bad news seem not so bad

posted by John Lampard on Friday, 4 December, 2009 to the comment subset

You’re more likely to succeed in breaking bad news if you blend it with some – even if it is a little – positive news.

In finance, for example, a mutual fund posting a quarterly loss would be better perceived by investors if the accompanying information pointed out the portions of the portfolio that posted a gain. In a retailing example, automobile manufacturers and dealers will be better appreciated by potential customers if they price a car at $20,000 with a $500 rebate than if they price the same car at $19,500.

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