There are certain pre-conceived notions and beliefs inherent in us. When these ingrained beliefs get influenced by things around us, the stimulus, trigger automatic action or the mechanical behavior on our part. Marketers use external stimulus to Influence these beliefs for selling of their products.
This book is about these inherent beliefs, how marketers exploit these and how we can be more aware about these to avoid our exploitation. Also how we can use some of these beliefs to influence others in business and at work.
Some of these "Influences" are listed below
If it is Expensive, it Must be Good !!
The inherent belief customers has is that if it is Cheap, it's not good, and in parallel, if it is expensive, it must be good ! We need to price our products and services aptly. Sometimes, pricing too low might have a negative impact on sales - this is reverse to Micro-economics Price-Demand curve
The Contrast Principle - We see things in contrast, e.g job interviews, or shopping. So it is good offer few inferior things and then even and average quality good will appeal to the customer.
Reciprocity Rule - We are obligated to the future repayment of the favors. Take the favors with a lot of caution. At the same time, try to do favors for others for a bigger payback in future. The lunches to the team never go waste.
But be careful about the reciprocity rule as this could lead to unfair exchanges on our part, we might end up doing much bigger favors in return to trivial favors - We should evaluate the favors objectively.
Reciprocal concessions are another subtle form of reciprocity rule. Make a bigger request, and when the person objects, offer a smaller request. He will be obligated to comply with the smaller request because you have made him a concession - Very strong Negotiation trick.
Limited things have value - do not provide your services, not all of it, free of cost, otherwise it will lose its value.
Commitment and Consistency - This is a killer one !
Compliance to commitment is in basic human psyche. Be consistent with what we have already done. If we have decided something, e.g to Marry somebody , then stick to it and do it, even if internally we know that it is not the right thing to do. We keep on complying to what we have already chosen. Not only complying, we come-up with fair reasons for complying.
It is good to get verbal or better written commitment of your employees, they will be forced to comply due to consistency principle. Written commitments work better because more work go in these. More the effort in the commitment, stronger is the compliance of those commitments. No wonder Indian marriages work much better than the ones in western world.
Do not make commitments with your kids for expensive toys, once you do, you will be obligated to comply to the commitment.
How to identify that you , yourself are falling into this commitment consistency trap? You stomach will tell you , will have a funny feeling that you do not want it and still going for it.
How to say no in such circumstances ? - Tell them exactly what is happening in the consistency trap. Say that you will not take it just because you made a commitment. Hence, very sorry but I will not be able to comply.
Social Proof - you do how others do.
The reverse of this is that nobody does anything, because there are a lot of people responsible, and everybody thinks that someone will do it, and nobody ends up doing it. It is very important to have a clear responsibility in an organization.
In the times of uncertainty, we look around what others are doing, and tend to do the same. So even in an organization scenario, during uncertain circumstances like lay offs, M&A, keep the communication going with your employees. Do not let the uncertainty prevail.
In a personal emergency, explain your situation to others well, so that they will be able to help you.
How to say No ? - Be aware of the fact when there is a social compliance happening with wrong data or for a wrong cause, and come under your control and decide to act on your own.
Liking - Tendency to say yes to some one we know and like
The Tupperware party - A known group of friends and neighbors get together, then the host offers them to buy the Tupperware bottles etc, and most of these friends and neighbors comply, just because they cannot say no.
The Halo Effect - Physical attractiveness - very difficult to say no to attractive people.We assign favorable traits automatically to good looking people.
We like people who are similar to us, in terms of dressing up, hobbies, work outs, etc
We like people who compliment us or laugh at our jokes :)
Positive and negative association - Advertisers use the principle of association a lot. They associate with their product a representative person, a sports celebrity or a film start, who is representative of the Target customers. Similarly, in workplace environment, who you associate yourself with, impacts your career. So chose your company very carefully.
How to say no under the linking influence? - The Key say no here is to be aware and to reflect back that our decision is coming because our liking for the person or because of the objective factors.
Authority - Deep seated sense of duty to Authority, we tend to comply to our bosses, no matter what. We comply to doctors and other experts in their fields.
Titles also impact the way people behave with you.
Clothes, they way you dress up, can also trigger Authority
The key to tackle this bias is to be aware when to follow the Authority and when to resist it. Should be mindful about the right kind of Authority
Scarcity - The rule of the few
The opportunity seems more valuable to us when its availability is limited. Limited edition products use the same principle. People seem to be more motivated by the thought of losing something than at the thought of gaining something.
Notion that things that are difficult to possess are better than the ones which could be easily obtained.
Availability is freedom and we hate to lose freedom
This principle is heavily used in marketing, limited seats availability in hotels etc. Corner plots of a layout, Top most floors of the tower.
Scarcity causes desperation , and people are ready to pay any price to over come their desperation.
Information scarcity or Censored information is desired more than the information which is readily available.
Rare chocolate and cookies taste better, though the taste might be the same as that of an ordinary chocolate or a cookie.
Parents who enforce discipline with their children inconsistently , make the children rebellious. Stick to the restrictions imposed, no matter what.
How to say No to Scarcity influences? Recognize the arousal that happens when we face scarcity. Use that arousal to objectively analyze whether there is genuine scarcity or a created one. Ask yourself, do I really need this thing or do I just want to possess it.
The complex world
Although human beings have a much evolved brain, they have made it less powerful by making the world around them more complex.In this complex world, it is really important to be aware as much as possible, to make any sense of this crazy world.