The art of negotiation: Six must-have strategies | LBS
Ringkasan
TLDRThe session explores the concepts of influence and persuasion based on social psychologist Robert Cialdini's six principles. These principles are reciprocity (returning favors), commitment and consistency (the importance of staying consistent with past commitments), social proof (following others' actions), liking (saying yes to people we like), authority (complying with authoritative figures), and scarcity (desiring things that are less available). These are practical tools to ensure not just compliance but genuine commitment towards ideas or actions, thereby encouraging independent action even in one's absence. Real-world examples, such as fundraising strategies, negotiating tactics, or marketing schemes are discussed to demonstrate the application of these ideas. Additionally, strategies to resist undue influence are also considered, including understanding one’s motivations and setting clear boundaries. The talk emphasizes the significance of understanding these psychological tactics to effectively communicate and persuade in personal and professional settings.
Takeaways
- 💡 Understanding Cialdini's six principles can enhance influence: reciprocity, commitment, social proof, liking, authority, scarcity.
- 📘 Practical examples of influence include charity donations, subscriptions, and advertising tactics.
- 🔄 Reciprocal actions encourage others to return favors, fostering collaboration.
- 🧑🤝🧑 Commitment and consistency make people align with their public and past actions.
- 🔍 Social proof can sway actions by showing what peers are doing, leveraging the fear of missing out.
- 💼 Authority influences compliance, as people tend to trust figures of authority even if their legitimacy is superficial.
- 💬 Liking increases persuasiveness; people tend to agree with those they find agreeable or similar.
- ⏳ Scarcity creates urgency and desire by making items seem limited or exclusive.
- 🎭 Providing alternate paths in decisions reduces commitment pressure.
- 🧠 Analyzing personal motivations can help avoid falling prey to undue influence.
- 🛡 Strategies to resist influence include setting boundaries, involving neutral advisors, and considering alternatives.
- 🧩 Pairing multiple principles strengthens persuasive efforts, making methods more effective.
Garis waktu
- 00:00:00 - 00:05:00
The speaker discusses the importance of influence and persuasion, emphasizing the need for theory to be practical. They intend to cover six principles based on Cialdini's work to help people not just comply, but commit to actions even in the absence of authority.
- 00:05:00 - 00:10:00
The speaker introduces the principle of reciprocity, explaining how doing a favor can create an expectation for a favor in return, thereby facilitating influence. Examples include negotiation tactics and charitable mailings, where initial gifts solicitate donations or compliance.
- 00:10:00 - 00:15:00
Discussing the principle of commitment and consistency, the speaker highlights how public commitments can drive consistent action. An example shared involved survey compliance, where upfront rewards led to higher participation rates due to perceived obligation.
- 00:15:00 - 00:20:00
The speech delves into the foot-in-the-door technique, where small initial commitments pave the way for acceptance of larger requests. A study demonstrated how signing a simple petition later increased likelihood of more significant compliance with related requests.
- 00:20:00 - 00:25:00
The speaker explores escalation of commitment, where individuals continue investing in decisions despite negative feedback. Suggestions to counteract this include involving neutral parties in decision-making to avoid biased reinvestment.
- 00:25:00 - 00:30:00
The concept of social proof is explained, highlighting how people often follow others' actions when uncertain. Strategies use social validation to influence behavior, seen in trends and marketing tactics, prompting individuals to conform to perceived group behaviors.
- 00:30:00 - 00:35:00
Liking as an influence principle is introduced, showing how people comply more with requests from those they like. This can be due to physical attractiveness, similarity, or positive associations. Examples include voting behavior influenced by candidates' charisma or appearance.
- 00:35:00 - 00:40:00
Authority is discussed as a powerful influence factor, where perceived authority compels compliance. Milgram's experiment illustrates how individuals follow instructions from authoritative figures, often against their better judgment, due to societal conditioning to heed authority.
- 00:40:00 - 00:45:00
Scarcity is the focus, revealing how perceived rarity increases desire. This principle is exploited by marketing strategies, like limited-time offers or exclusive products, to create urgency and compel purchasing decisions.
- 00:45:00 - 00:50:00
The discussion emphasizes combining influence principles strategically enhances effectiveness. An example involves auction fever, driven by scarcity and competition, illustrating the powerful impact of multiple concurrent persuasive tactics.
- 00:50:00 - 00:56:54
Concluding with a focus on influence and persuasion strategies, the speaker stresses the importance of relationship-building and framing information effectively, suggesting that the method of delivery can be as significant as the message itself.
Peta Pikiran
Video Tanya Jawab
Why are influence and persuasion important?
Influence and persuasion are crucial because they help not only in gaining compliance from others but also in achieving commitment to shared goals, ensuring desired actions even in your absence.
What are Cialdini's six principles of influence?
Cialdini's six principles are reciprocity, commitment and consistency, social proof, liking, authority, and scarcity.
What is the principle of reciprocity?
Reciprocity involves giving a favor to others, leading them to feel compelled to return the favor.
How does commitment and consistency influence behavior?
When people commit to something publicly, they feel a need to remain consistent with that commitment, even if they receive negative feedback later.
What is the principle of social proof?
Social proof is when people look to others' actions to decide their own, especially when they are uncertain about what to do.
How does the principle of liking affect persuasion?
Liking leads us to say yes to requests from people we like, who may be attractive or similar to us.
What role does authority play in influence?
People are more likely to comply with requests from those who hold perceived authority, even if the authority is only superficial.
How does scarcity influence decision-making?
Scarcity increases the perceived value of an item or opportunity when it seems limited in availability or time.
How does De Beers create scarcity with their diamonds?
Limiting the supply of diamonds artificially creates a perception of scarcity, increasing their desirability and market value.
Can multiple principles of influence be combined for greater effect?
Yes, these principles can be combined to enhance their effectiveness, as illustrated in scenarios like auctions which use competition, time pressure, and scarcity simultaneously.
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- 00:00:00so this morning I'm going to be sharing
- 00:00:01some you know theory with you so to some
- 00:00:04extent I'm glad I have you early where
- 00:00:05the caffeine is still kicking in what
- 00:00:07we're gonna be talking about this
- 00:00:08morning Society of influence and
- 00:00:10persuasion and when I say theory the
- 00:00:12reason why I say theory is because
- 00:00:13there's actually a rich this isn't a
- 00:00:15rich area of research there's a lot of
- 00:00:17science behind it and I want to share
- 00:00:18with you just a little bit of that
- 00:00:21science now you know here at lbs we
- 00:00:24believe very strongly that there's no
- 00:00:25point throwing theory at you if it's
- 00:00:28also not simultaneously practical to you
- 00:00:31so while I'm gonna be talking about
- 00:00:33these ideas of influence and persuasion
- 00:00:35and the science behind it simultaneously
- 00:00:37I'm going to be giving you tons and tons
- 00:00:39of examples right whether it's in the
- 00:00:41business world whether it's in the rail
- 00:00:42social world just try and make these
- 00:00:45ideas come alive and the other thing
- 00:00:47about my style of sort of like teaching
- 00:00:50and being in front of a class is that I
- 00:00:52really don't know what to do if I'm just
- 00:00:54hearing myself talk endlessly so I do
- 00:00:56hope and expect that you guys will
- 00:00:59participate along with me and you know
- 00:01:03bring in things that you think are
- 00:01:04pertinent as we talk about these ideas
- 00:01:06of influence and persuasion so on I
- 00:01:10think big picture we all appreciate the
- 00:01:12idea of needing to influence people
- 00:01:14right so you know many of you guys may
- 00:01:17be very senior in your organizations and
- 00:01:19yes it may be the case that you can go
- 00:01:20around just telling people to do
- 00:01:22something but as you may well experience
- 00:01:25telling somebody to do something might
- 00:01:27result in them just kind of complying
- 00:01:29with what it is that you want them to do
- 00:01:31which is all fine and good but it
- 00:01:34doesn't necessarily result in them being
- 00:01:36committed to what it is that you're
- 00:01:38thinking about wanting them to do and
- 00:01:41the course of action that you're
- 00:01:42pursuing um and as a result of that
- 00:01:44these ideas around influence and
- 00:01:46persuasion are really really key because
- 00:01:48they move beyond getting somebody to
- 00:01:50just simply comply with what it is that
- 00:01:53you're requesting to actually being
- 00:01:54truly committed to the course that
- 00:01:56you're setting for them such that when
- 00:01:58you're not in the room when you're away
- 00:02:00at LBS attending a course or at a
- 00:02:03meeting in a different organization
- 00:02:05these individuals are still doing the
- 00:02:08things that you want them to do and that
- 00:02:10in some sense is a big reason
- 00:02:13we have these ideas and want to think
- 00:02:15about these ideas of influence and
- 00:02:17frustration and as I said there's a very
- 00:02:19very large area of research around this
- 00:02:21and I want to share with you just six
- 00:02:24basic principles around how it is that
- 00:02:27we interact with people right so this
- 00:02:32work is really being influenced by a guy
- 00:02:34called Robert Cialdini he's a social
- 00:02:36psychologist and he he came up with
- 00:02:39these ideas these six principles and
- 00:02:40thinks of them as a sort of like
- 00:02:42interpersonal principles of influence
- 00:02:44and that's kind of what I'm gonna be
- 00:02:46doing this morning sharing these ideas
- 00:02:48with you so if we start off just kind of
- 00:02:51at the top and work our way down if we
- 00:02:53think about the idea of reciprocity
- 00:02:55reciprocity is this very very powerful
- 00:02:58sense of that when I do somebody a favor
- 00:03:00they feel a compunction to do a favor
- 00:03:03back for me in return I'm sure that you
- 00:03:06can think of many many instances in your
- 00:03:08own lives when when you're trying to get
- 00:03:10somebody to do something rather than
- 00:03:12just making request after request after
- 00:03:14request it may actually be easier to do
- 00:03:17them a little favor first
- 00:03:18and then all of a sudden they're
- 00:03:20actually much more likely to do
- 00:03:21something back for you in return right
- 00:03:23so in negotiations we know this very
- 00:03:25very well that if for instance we want
- 00:03:29the other side to share information
- 00:03:30about their priorities actually a really
- 00:03:32really good way of trying to start that
- 00:03:34process is to share a little bit of
- 00:03:36information with them when we do that
- 00:03:38that kick starts this process of
- 00:03:40reciprocity and then hopefully and
- 00:03:43usually people then feel a of a duty to
- 00:03:48respond in kind and give you some
- 00:03:50information back in return on I have
- 00:03:53this thing here on anybody know what I'm
- 00:03:56talking about what this is it's very
- 00:03:59popular in the US so these are like
- 00:04:03mailing labels so return address labels
- 00:04:06and I don't know how many of you guys
- 00:04:08have experienced this but sometimes
- 00:04:09charities will send these out so the
- 00:04:12gentleman is at the back is nodding so
- 00:04:14tell me a little bit about this
- 00:04:16in the US that yeah Ennis I mean this is
- 00:04:30exactly they're trying to work on this
- 00:04:31principle reciprocity okay um did you
- 00:04:34ever donate out of curiosity yes okay um
- 00:04:37so so you're more generous than I was I
- 00:04:39was when I was in the u.s. I was always
- 00:04:41a starving student so I would get these
- 00:04:43in the mail and starving student as my
- 00:04:45excuse I never I never donated but this
- 00:04:48is the principle that they're working on
- 00:04:50right so they're printing out these
- 00:04:52return address little stickers and and
- 00:04:56obviously this is incredibly cheap for
- 00:04:58them to do you can only imagine that all
- 00:05:00they need is a color printer they need
- 00:05:02to have bought some stickers from from
- 00:05:05Office Depot and then they're printing
- 00:05:07them out on mass and then they send it
- 00:05:09to you and now you'll receive this thing
- 00:05:11and oh my goodness it's a personalized
- 00:05:13gift how thoughtful of them and then
- 00:05:17they kick in this idea of reciprocity
- 00:05:19and now you feel a slight need to do
- 00:05:22them a favor in return
- 00:05:23ah there are many other examples of this
- 00:05:26so you know this is a decide of like is
- 00:05:28it really a free gift in the mail I
- 00:05:30mentioned this idea of reciprocity
- 00:05:34negotiations right giving some
- 00:05:36information to get information but I'll
- 00:05:38give you another example so this is a
- 00:05:39study that was done some years back and
- 00:05:42then we're trying to figure out how to
- 00:05:43get people to respond to surveys so I
- 00:05:46don't know how many of you guys I have
- 00:05:48to do customer surveys or even in-house
- 00:05:51service when you're trying to get your
- 00:05:52employees to respond to you but this is
- 00:05:55an interesting one so this company was
- 00:05:57interested in trying to understand it's
- 00:05:58not this company sorry these bunch of
- 00:06:00researchers were interested in trying to
- 00:06:01understand how to get people to respond
- 00:06:03to surveys so what did they do
- 00:06:05they had two groups of people and one
- 00:06:08group of people they sent out this
- 00:06:10survey and they said hey we'd like for
- 00:06:12you to complete the survey is really
- 00:06:13important for us you're all part of this
- 00:06:15organization we want feedback from you
- 00:06:17and if you complete the survey and send
- 00:06:20it back to us we will send you a check
- 00:06:22for $25 okay
- 00:06:24I mean $25 is it's not a small amount of
- 00:06:29money it's a decent amount of money
- 00:06:30you know I could get a very nice lunch
- 00:06:33or simple dinner for that okay I can I
- 00:06:35can work with that and then in the other
- 00:06:38condition what they did was they send
- 00:06:40out the survey and they said hey we
- 00:06:41really really like for people to
- 00:06:43complete the survey here's a five-dollar
- 00:06:45track it's yours to keep whether you
- 00:06:48complete the survey or not but we really
- 00:06:51like for you to complete the survey
- 00:06:52people were much more likely to complete
- 00:06:56and return the survey in this condition
- 00:06:59now
- 00:07:00Synnex in the room are probably going
- 00:07:01hang on a second I've just sent out like
- 00:07:04a lot of five-dollar tracks am i in a
- 00:07:06lot of trouble now interestingly no
- 00:07:09people in this condition tended to be
- 00:07:12honest they tended not to cash the check
- 00:07:15unless they actually completed the
- 00:07:17survey so this idea of reciprocity was
- 00:07:21one more effective and to more cost
- 00:07:25efficient then this idea of hey you do
- 00:07:29something for me then I do something
- 00:07:31back for you in return right so this
- 00:07:33idea of reciprocity is quite powerful
- 00:07:35any ideas that you guys can think of
- 00:07:37around reciprocity ideas or how you've
- 00:07:44seen it play out in your lives or in
- 00:07:46your organizational lives
- 00:08:00if you get promoted sometimes in some
- 00:08:04situations it may be that you've had
- 00:08:07this credit of trust from your boss or
- 00:08:10whatever yeah no I can see that right so
- 00:08:17interestingly enough you've done the
- 00:08:18work to get the promotion but even then
- 00:08:20they're giving you this promotion and
- 00:08:22now there's this sense that oh my
- 00:08:24goodness I really really need to do good
- 00:08:27by them for giving for putting their
- 00:08:29trust in me okay thank you anything else
- 00:08:32that you guys can think of any other
- 00:08:33examples that you can think of I'll give
- 00:08:39you a funny example but this also gets a
- 00:08:42little bit at how as we start thinking
- 00:08:44about how to use influence it's also I
- 00:08:45think interesting to think about how it
- 00:08:47is that we make sure that it's not being
- 00:08:48used against us okay so this one's a
- 00:08:51funny example that puts those two two
- 00:08:53ideas together on I'm Singaporean
- 00:08:56originally I know that my accent is now
- 00:08:58completely muddled I lived in the US for
- 00:09:00a long time I lived here for a long time
- 00:09:01I don't know what I sound like now but
- 00:09:04in sample one of the things that we
- 00:09:06celebrate is Chinese New Year and during
- 00:09:08Chinese New Year and this is a very
- 00:09:10Singaporean custom it's not even an s
- 00:09:15necessarily a chore broadly Chinese
- 00:09:17custom but in Singapore when you
- 00:09:19celebrate Chinese New Year you go visit
- 00:09:21all your friends and family which is the
- 00:09:23same across China but the unique thing
- 00:09:26in Singapore is that when you do this
- 00:09:27you bring two mandarin oranges to your
- 00:09:31host home okay and it's two mandarin
- 00:09:34oranges because the word for mandarin
- 00:09:36oranges are in in Chinese sounds like
- 00:09:39gold sounds like fortune so in a very
- 00:09:42Chinese way they're playing on this
- 00:09:43linguistic thing to say I'm bringing you
- 00:09:45fortune okay so what happens is that you
- 00:09:49go to your host home you bring to our
- 00:09:51and just for with you you give them to
- 00:09:53them and they now immediately feel the
- 00:09:55need to do you a favor back in return so
- 00:09:58what do they do
- 00:09:59they go to their kitchen put those two
- 00:10:02oranges down take two oranges and give
- 00:10:04them back to you so
- 00:10:05you started with two oranges now you
- 00:10:08know five minutes later you you're back
- 00:10:09with two oranges so then you repeat this
- 00:10:11process as you visit the houses right so
- 00:10:14you visit the next house hey you still
- 00:10:15have two oranges so you give it to your
- 00:10:17new host your new host gives you new
- 00:10:20oranges back in return you still have
- 00:10:22two oranges so you keep doing this
- 00:10:24process of giving favors and then
- 00:10:26reciprocating such that at the end of
- 00:10:30the day you still have two oranges you
- 00:10:33started in with two oranges and the end
- 00:10:35of it might not be the same two oranges
- 00:10:37but you still have two oranges and it
- 00:10:39really is this a very ritualized version
- 00:10:43of this reciprocity process okay but
- 00:10:46it's also how it is that people are
- 00:10:48trying to now out the effects right so
- 00:10:51if people are trying to do your
- 00:10:52favorites and curry favor with you
- 00:10:55this is this is an instance of how it is
- 00:10:57that you defuse these reciprocity
- 00:11:01influence tactics can you guys think of
- 00:11:04how else you might you know try and
- 00:11:06diffuse these tactics if they're being
- 00:11:08used against you Cole thank you so so so
- 00:11:25so okay for those who are not in on the
- 00:11:30on the details to tell me a little bit
- 00:11:32about okay okay
- 00:11:48that she's bringing Olimpico okay I
- 00:11:54think it's called first I see okay
- 00:12:01okay good good evolution of a tradition
- 00:12:11okay other ideas of how you can see this
- 00:12:14sort of like if somebody is trying to
- 00:12:15use this influence tactic against you
- 00:12:18how you would try and now also these
- 00:12:21sorts of reciprocity influence tactics
- 00:12:30mm-hmm so you could you could pay for
- 00:12:33you could just decline to accept it but
- 00:12:35my guess is that in an organizational
- 00:12:37situation well in most situations that
- 00:12:39could come across as kind of rude right
- 00:12:42so yes you can try that okay but be
- 00:12:45careful that you don't offend your your
- 00:12:48your counterpart other things that you
- 00:12:50could do absolutely right so there's
- 00:12:58just a sense of tit for tat you know
- 00:12:59down the line I remember it's my turn to
- 00:13:01pay for lunch or dinner or whatever or
- 00:13:03drinks yeah
- 00:13:04somebody had a yes yeah yeah so exactly
- 00:13:12right okay yes aye aye I don't dispute
- 00:13:23this so in some sense as we go through
- 00:13:26all these different types of influence
- 00:13:27tactics that is the the advice that will
- 00:13:31be consistent for many of them but I'm
- 00:13:34gonna present to you some research that
- 00:13:36basically says you know what sometimes
- 00:13:38that doesn't work as well as we'd like
- 00:13:40to think that it would and in that
- 00:13:44regard it's therefore even better to
- 00:13:45have other ways of tackling them my
- 00:13:47guess is that for instance within an
- 00:13:49organizational setting many many many of
- 00:13:51you guys will have rules within your
- 00:13:54organisation set that say I can accept
- 00:13:56this gift but not this gift a certain
- 00:13:58value of gifts or there's certain things
- 00:13:59that I can't do these organizational
- 00:14:02boundaries are there in some sense
- 00:14:03because sometimes just uh saying I
- 00:14:06understand what they're doing and I'm
- 00:14:08not gonna fall prey to it is not
- 00:14:10necessarily sufficient yeah so some
- 00:14:14things that we can do as I said you
- 00:14:15could try and reject the gift but it
- 00:14:17could be it's not necessarily easy it
- 00:14:19could be seen as impolite we could be
- 00:14:21exactly this right accept the gift but
- 00:14:23kind of be wary of what's going on and
- 00:14:26again that can't work don't get me I'm
- 00:14:27not trying to say that it won't work but
- 00:14:29I'm just saying that it's not as easy as
- 00:14:31it might sometimes be and uh that
- 00:14:35whatever this happens to me I I
- 00:14:37generally like to have a ready excuse
- 00:14:38you know somebody want I go into a shop
- 00:14:40and try and buy
- 00:14:42I'm trying to buy something and they
- 00:14:43offer me a coffee or whatever it might
- 00:14:46be
- 00:14:46thanks I just had breakfast I don't need
- 00:14:49anything right now that doesn't
- 00:14:51necessarily stop them from still trying
- 00:14:52to really like foist and stuff on me but
- 00:14:56at least if I have a ready excuse that
- 00:14:58potentially helps me to overcome their
- 00:15:02their influence tactics that's
- 00:15:05reciprocity let me give you some other
- 00:15:07ideas to think about um another tactic
- 00:15:10that she'll Dini talks about is this
- 00:15:12idea of commitment and consistency and
- 00:15:15the idea of commitment and consistency
- 00:15:17is that once we make a decision and we
- 00:15:20head down a particular path of action we
- 00:15:23feel the need to be consistent with that
- 00:15:26course of action and this can happen
- 00:15:28even if we get negative feedback about
- 00:15:31our actions and is particularly
- 00:15:34effective if the commitments are done
- 00:15:37sort of like in a very active public way
- 00:15:41right you can imagine right so if you
- 00:15:43stand up and immediately start saying
- 00:15:45things about you know I am going to you
- 00:15:49know New Year's is coming and I'm going
- 00:15:51to make a resolution to start going to
- 00:15:52the gym if you make that sort of like
- 00:15:53public commitment it becomes much more
- 00:15:57effective in ensuring that you become
- 00:15:59consistent with that course of action
- 00:16:01down the road so I have another example
- 00:16:03a bumper sticker right so not as common
- 00:16:10here again but again this is potentially
- 00:16:12a bit of a u.s. example but when I was
- 00:16:16in the US I remember seeing bumper
- 00:16:19stickers for every which cause that was
- 00:16:21out there but beyond that for children's
- 00:16:25schools right always like proud parent
- 00:16:27of you know whatever whatever school why
- 00:16:31do people do that why why are these you
- 00:16:33know bumper stickers so prevalent and
- 00:16:35then come election time also very very
- 00:16:38prevalent why are they out there
- 00:16:50okay and then what happens when that
- 00:16:53brand comes knocking on your door for
- 00:16:55for money or current you know or your
- 00:16:58time commitments or something like that
- 00:17:00you've defined this is exactly you're
- 00:17:03exactly right right you're spot-on
- 00:17:04you've defined yourself as that is part
- 00:17:08of your brand so when that brand comes
- 00:17:10saying I need your help
- 00:17:12in terms of time whether it's for your
- 00:17:14children's school or money for saving
- 00:17:17the whales or whatever it might be
- 00:17:18you're much much more likely to do that
- 00:17:21right another example and this one is I
- 00:17:25like this example because it really kind
- 00:17:27of combines these different a couple of
- 00:17:30these different influence tactics and
- 00:17:31one of the things to think about if
- 00:17:33you're trying to go around influencing
- 00:17:34and persuading other people is that if
- 00:17:36you can tap into multiple of these
- 00:17:39principles
- 00:17:40whatever you're doing becomes ever more
- 00:17:42powerful because it fundamentally means
- 00:17:45that it's leveraging off of different
- 00:17:47psychological ideas simultaneously okay
- 00:17:50so example how many of you guys have
- 00:17:52been let's say on the plane and you're
- 00:17:55reading some sort of magazine and you
- 00:17:56see in the magazine this little tear off
- 00:17:58thing that says you can get three weeks
- 00:18:02or three issues or free of this magazine
- 00:18:04and then after that you know you have to
- 00:18:07stop paying how many of you guys have
- 00:18:08seen that yeah how many of you guys have
- 00:18:10signed up for that okay and tell me a
- 00:18:15little bit about you did remember
- 00:18:17counsel well done you so how or why did
- 00:18:20you remember to cancel but that's this
- 00:18:27to large extent is this idea of like
- 00:18:29commitment and consistency but there's
- 00:18:30also reciprocity going back to what we
- 00:18:33just talked about right they're giving
- 00:18:35you three free issues or whatever it
- 00:18:37might be and then there is also the hope
- 00:18:39that hey I'm reading this I'm reading
- 00:18:42you know whether it's National
- 00:18:43Geographic or The Economist or whatever
- 00:18:47it might be and especially come on let's
- 00:18:48say the Economist okay I'm reading it
- 00:18:50now Wow
- 00:18:51I'm feeling so smart for reading The
- 00:18:53Economist okay and and you know what you
- 00:18:56know what I want to be that smart person
- 00:18:58who reads The Economist so when it comes
- 00:19:00time to renew my subscription sorry to
- 00:19:02actually stop pay
- 00:19:03for my subscription I'm quite likely to
- 00:19:06do it because I've coded myself as a
- 00:19:08person who reads The Economist but
- 00:19:11honestly speaking I don't know about you
- 00:19:14guys but the Economist is like comes out
- 00:19:16what once a week it takes me a month to
- 00:19:19read each issue right so there's just
- 00:19:21like giant backlog of economists sitting
- 00:19:24on my desk and I'm still shelling out
- 00:19:27money because I've coded myself as
- 00:19:29somebody who reads The Economist other
- 00:19:33examples that I have for you for the SIA
- 00:19:35T of commitment and consistency so we
- 00:19:38talked about bumper stickers petitions
- 00:19:40are very similar in nature has anybody
- 00:19:43heard of the foot in door technique I I
- 00:19:47hear laughter so I'm hoping there with
- 00:19:50our with our new guest who's just joined
- 00:19:53us feel comfortable sharing a little bit
- 00:19:55with no no no sorry I'm putting you on
- 00:19:57the spot but you were laughing so do you
- 00:20:00want to tell us a little bit about this
- 00:20:01foot in door technique make sure you're
- 00:20:04on the inside before they people know
- 00:20:07actually what you're talking about
- 00:20:09kind of yeah anybody else familiar with
- 00:20:12this tack tactic you're selling brushes
- 00:20:20yes yeah
- 00:20:27housewife obviously they do that by
- 00:20:30saying yeah so thank you that that's
- 00:20:37pretty much this idea that it came about
- 00:20:41when people used to go door-to-door
- 00:20:42selling stuff whether it's brushless or
- 00:20:45whatever it might be and the idea is
- 00:20:47simply that hey if I can get my foot in
- 00:20:49I can get the rest of myself through the
- 00:20:52door okay because once you've committed
- 00:20:55to letting me just you know get in a
- 00:20:57little bit I can open that door further
- 00:20:59there was a study done in and this is an
- 00:21:02old study but it's a beautiful study
- 00:21:04done in the 1960s to examine this wooden
- 00:21:07door technique and I have to tell you
- 00:21:08about it because it's really um it's
- 00:21:10kind of amazing so this was done in
- 00:21:14California and they were interested in
- 00:21:17getting people to put a big ugly sign
- 00:21:21saying drive carefully on on these
- 00:21:24people's front gardens okay um and they
- 00:21:29were kind of curious about how to get
- 00:21:30people to comply with this request and
- 00:21:32so in one condition they knocked on a
- 00:21:35bunch of doors in a neighborhood and
- 00:21:36said hi we're very interested in people
- 00:21:38driving carefully in your neighborhood
- 00:21:39would you be willing to put this big
- 00:21:42sign which was very very ugly on your
- 00:21:44front garden people looked at the sign
- 00:21:46and so we're like
- 00:21:48not so much okay 17% of the people here
- 00:21:52said that they were willing to put this
- 00:21:53big ugly sign on their front Gardens the
- 00:21:57other condition they knocked on the door
- 00:21:59and said hi we're very interested in
- 00:22:01people driving carefully in your
- 00:22:03neighborhood would you be willing to put
- 00:22:05this little sticker sing drive carefully
- 00:22:08on your window everybody said yes I mean
- 00:22:10this is a neighborhood people had
- 00:22:12children they wanted people to drive
- 00:22:13carefully so absolutely everybody said
- 00:22:15yes two weeks later knock knock knock
- 00:22:18what do you be willing to put this big
- 00:22:21ugly sign saying
- 00:22:23drive carefully on your front lawn 76%
- 00:22:27of the people said yes right verses 17
- 00:22:30from the other condition so think about
- 00:22:32a time when if you're trying to get
- 00:22:34somebody to do something for you and
- 00:22:36their initial response is no no no think
- 00:22:42about whether you can make a smaller ask
- 00:22:44initially because that may be the way to
- 00:22:47try and get them to do the big off later
- 00:22:50on this is this idea of commitment and
- 00:22:54consistency how do we prevent from well
- 00:22:59I'll give you one my idea the there's a
- 00:23:03very very powerful area of literature
- 00:23:07that talks about something called
- 00:23:09escalation of commitment
- 00:23:11okay escalation of commitment refers to
- 00:23:12a phenomenon where if people make
- 00:23:14investments are typically money but also
- 00:23:16time or energy in a particular cause of
- 00:23:18action and then they get negative
- 00:23:20feedback people typically feel people
- 00:23:24typically reinvest in this failing cause
- 00:23:28of action because they feel the need to
- 00:23:31be consistent with their initial choice
- 00:23:34right so from an economic standpoint
- 00:23:37this is considered irrational it's
- 00:23:40considered throwing good money after bad
- 00:23:43you're supposed to ignore some costs and
- 00:23:46people are honoring some cost and this
- 00:23:49escalation phenomenon has been used to
- 00:23:52explain anything ranging from R&D
- 00:23:55investments to commitment to personnel
- 00:23:59right so you hire somebody there
- 00:24:02not working out quite right well we
- 00:24:04could ask them to exit or we could give
- 00:24:07them more training well let's give them
- 00:24:09more training and more training and more
- 00:24:10training even though maybe we should be
- 00:24:14thinking about exiting them gracefully
- 00:24:16it's been used to explain the Vietnam
- 00:24:19War it's been used to explain even
- 00:24:24things like the amount of time that
- 00:24:25basketball players have on court
- 00:24:28so these analyses try to control for how
- 00:24:31much how good these players were but
- 00:24:34even then if these people these
- 00:24:36basketball players were recruited with a
- 00:24:38big lump sum of money they ended up
- 00:24:41having more more playing time on the
- 00:24:43court understanding all of this how do
- 00:24:46we try and prevent some of these things
- 00:24:48from happening how do we ensure that the
- 00:24:51decisions that we're making are good
- 00:24:52decisions and not bias by these initial
- 00:24:55commitments that we make
- 00:25:09agree so being very concrete and
- 00:25:11objective in your data I will say that
- 00:25:14research has found that the way that we
- 00:25:16look at the data becomes bias to because
- 00:25:19of this right so I hear you and I agree
- 00:25:22with that the stop-loss is like this
- 00:25:24bottom line this reservation prices
- 00:25:25reminder that I need to stop which I
- 00:25:27also agree with so this is very
- 00:25:30difficult to prevent and you need to try
- 00:25:32many things so these are good but may
- 00:25:34not be sufficient all the things that we
- 00:25:36can do very good idea right so what's
- 00:25:43happening is that if I make the initial
- 00:25:46choice to invest resources in the course
- 00:25:48of action I'm the one who feels as
- 00:25:50though I need to be consistent but if I
- 00:25:53have a neutral third party make the
- 00:25:56reinvestment decision so a colleague who
- 00:25:58can help me with my thinking help me
- 00:26:01analyze the data that can be very
- 00:26:03helpful because this colleague is not
- 00:26:05burdened by the same need to be commit
- 00:26:07to be consistent with initial
- 00:26:08commitments other things that you can
- 00:26:11think about this is one of those where
- 00:26:16we say ignore sunk cost right so this
- 00:26:19gentleman was very very rational and say
- 00:26:21well we need to kind of understand that
- 00:26:23these things are happening to us and we
- 00:26:24just need to say no and my dissertation
- 00:26:28for many many many years ago was looking
- 00:26:30at exactly this idea when it comes to
- 00:26:32these sunk costs can we just say you
- 00:26:34know what we just need to ignore them we
- 00:26:36just need to understand that they're
- 00:26:37there and ignore them the problem is
- 00:26:40that we don't go around saying ooh let
- 00:26:43me look out for sunk costs ooh let me
- 00:26:44beware of sunk costs and then the next
- 00:26:46thing you know the sunk costs hit you
- 00:26:48and then you feel this this this need to
- 00:26:51be consistent this is why these
- 00:26:53principles are as potentially tricky as
- 00:26:55they are yeah so some idea is there let
- 00:27:01me give you more things to think about
- 00:27:02so we talked about reciprocity we talked
- 00:27:05about commitment and consistency there's
- 00:27:08this idea of social proof which is this
- 00:27:11notion that when the course of action is
- 00:27:14Caesar
- 00:27:41what was interesting as I'm coming you
- 00:27:44know this is this is this is something
- 00:27:45that happens in the collaboration and
- 00:27:48actually you can I can see when she sits
- 00:27:52something out loud I'm like yeah that's
- 00:27:53gonna be as a public commitment he's
- 00:27:55gonna kind of reinforce her so they're
- 00:27:58there any tips for us so so without
- 00:28:03asking for more specifics which I'm not
- 00:28:06sure I can deal with um I would say that
- 00:28:09you want to try and find an a graceful
- 00:28:11exit right so so a graceful exit a
- 00:28:14graceful way to back out from that
- 00:28:16commitment but the other thing too is to
- 00:28:19find an alternative so a lot of these
- 00:28:22types of commitment and consistency
- 00:28:25things it be in your head it becomes go
- 00:28:29no-go it becomes invest not invest it
- 00:28:33becomes let the person in don't let the
- 00:28:36person in but if we can think of an
- 00:28:37alternative path and also another
- 00:28:40acceptable path then all of a sudden the
- 00:28:43thinking becomes different and it's not
- 00:28:45so binary it's not so oh my god I have
- 00:28:47to do this to be consistent there's wait
- 00:28:50hang on second maybe there's this
- 00:28:51alternative thing that I can do instead
- 00:28:53so without the gory details those are my
- 00:28:56suggestions yes yes yes in a face-saving
- 00:29:00manner yeah for you as well probably
- 00:29:03yeah okay so so so proof social proof is
- 00:29:09saying that when the course of action is
- 00:29:11not completely clear we very often look
- 00:29:15to other people around us as to what it
- 00:29:17is to that we should do and we follow
- 00:29:20them right we're much more likely to
- 00:29:22follow people who are like us who are in
- 00:29:25close proximity to us and this can
- 00:29:28result in a lot of
- 00:29:30interesting things so I I had the the
- 00:29:34difficulty with doing these sessions is
- 00:29:36that I have so many examples to share
- 00:29:38with you and I'm like picking and
- 00:29:39choosing amongst my kids but this one I
- 00:29:41have to choose so laughs tracks do we
- 00:29:45know what those are the canned laughter
- 00:29:49right so and a lot of TV shows a lot of
- 00:29:51these sitcoms says this canned laughter
- 00:29:53in the background who here finds it
- 00:29:56annoying yeah okay
- 00:29:59but why do sitcoms wider the studio's do
- 00:30:02this because it works and it's
- 00:30:05particularly effective if the show is
- 00:30:08ambiguously funny if somebody else is
- 00:30:10laughing you find that funny too so it's
- 00:30:14just something to keep in mind how do we
- 00:30:16get somebody to do something well tell
- 00:30:18them everybody else is doing it and we
- 00:30:20see this happening a lot of times right
- 00:30:22it's like this happens with trends it
- 00:30:24happens with a lot when in marketing
- 00:30:25where they try and say look everybody
- 00:30:27likes this and when that happens since
- 00:30:30the senses oh I must like it too within
- 00:30:33a more business example and the source
- 00:30:37of social proof ideas have a lot to do
- 00:30:39with both actions and themselves so if
- 00:30:42somebody's bidding right you're not very
- 00:30:44sure whether this has value or not if
- 00:30:45somebody's bidding okay you bid too but
- 00:30:47then that as a result of that they have
- 00:30:49it has implications for things like M&A
- 00:30:51so my husband's a banker and what do
- 00:30:53they try and do if you can get one
- 00:30:55interested party to interest the party
- 00:30:57you're done there will now be a whole
- 00:30:59slew of people who are interested in
- 00:31:01buying this company because these ideas
- 00:31:03of social proof kick in please
- 00:31:11I'm afraid somebody else you're trying
- 00:31:13to get me social proof to say exactly
- 00:31:18exactly
- 00:31:23yes absolutely right and and then very
- 00:31:26often too it goes beyond social proof
- 00:31:28but we pair it with this idea of we pick
- 00:31:30the people who whose quotes we use right
- 00:31:33it may be a celebrity or somebody very
- 00:31:36cool because we want to be like these
- 00:31:39people so it's again pairing different
- 00:31:42types of influence tactics together but
- 00:31:44absolutely yeah the best thing to do is
- 00:31:53just talk to each of them before their
- 00:31:55meeting yeah
- 00:31:56and present the new idea to each of them
- 00:31:57yeah them to think that idea is great
- 00:31:59yeah presented as new
- 00:32:01yeah old meeting yeah there's more
- 00:32:03chance that's going to be accepted yeah
- 00:32:04and so so so thank you for this and but
- 00:32:10it's it's not just I mean I know that it
- 00:32:12may be particularly relevant in a in a
- 00:32:16Japanese culture but it's true the world
- 00:32:18over right if you're trying to sell an
- 00:32:20idea trying to sell it first time in
- 00:32:23front of a big group it's not
- 00:32:24necessarily the easiest thing to do
- 00:32:26whereas if we can get a bunch of people
- 00:32:27off line to buy into your idea then to
- 00:32:30hopefully publicly support one or two of
- 00:32:33them to publicly support you in the big
- 00:32:35room you're much more likely to get a
- 00:32:38momentum of people who are who are
- 00:32:40voting in your favor again bringing
- 00:32:43things like brexit where it becomes
- 00:32:44pertinent um how do we prevent some of
- 00:32:47these things from affecting us
- 00:32:51unfortunately the research doesn't
- 00:32:52necessarily have great ideas here so we
- 00:32:56just have to kind of say looking cut you
- 00:32:57need to understand your motivations for
- 00:32:59doing something don't just follow the
- 00:33:01crowd right and I write I say this for
- 00:33:03those of you guys who have kids I mean
- 00:33:04this is really particularly pertinent
- 00:33:05right so kids just kind of follow fads
- 00:33:07and trends and and and you're trying to
- 00:33:10give them to be individuals and to
- 00:33:11understand what's going on this is
- 00:33:13consistent with some of these ideas
- 00:33:16this one's easy to understand but really
- 00:33:19really powerful we like to say people
- 00:33:22who we like to say
- 00:33:24yes to people whom we like which means
- 00:33:27that we want to be likeable in some
- 00:33:30sense and what makes us likeable well if
- 00:33:33there's a lot of research to show that
- 00:33:36people who are physically attractive are
- 00:33:37more likeable people who are similar to
- 00:33:40us are more likeable so if somebody
- 00:33:42comes from the same town same city same
- 00:33:44country as you more likeable if somebody
- 00:33:47has the same name as you research has
- 00:33:49shown that even if you just tell them
- 00:33:50same name all of us you don't know
- 00:33:52anything else you're more likely to
- 00:33:53trust them okay for I don't know why but
- 00:33:56there you go we like that we like our
- 00:33:59name so we like other people who have
- 00:34:00the same names as us people who
- 00:34:02compliment us people who are associated
- 00:34:04with positive things I'll give you some
- 00:34:07funny examples who are these guys Arnel
- 00:34:16I'll be back who's the other guy
- 00:34:22some what some other know Cruz
- 00:34:26Bustamante okay now you might remember
- 00:34:29that our our I'll be the terminator
- 00:34:32became the Governor of California right
- 00:34:35this happened during the this recall
- 00:34:37elections and the other there were a lot
- 00:34:40of people who ran for these recall
- 00:34:41elections but the the other big
- 00:34:43contender was this guy Cruz Bustamante
- 00:34:46now Cruz Bustamante as it turns out was
- 00:34:50extremely qualified for the position he
- 00:34:52was the Lieutenant Governor he'd been a
- 00:34:55public servant for many many years in
- 00:34:57fact up until that time he was like of a
- 00:34:59highest-ranking Latino in public office
- 00:35:03okay but he didn't win the elections the
- 00:35:09famous Hollywood star won the elections
- 00:35:12right I mean and this goes towards this
- 00:35:14idea of liking especially in especially
- 00:35:19since the vote was happening in
- 00:35:19California I mean this is a Hollywood
- 00:35:21wall people know him people I mean like
- 00:35:24him he represents all these cool things
- 00:35:26he's married into the Kennedy family or
- 00:35:28was at that time was okay and then
- 00:35:33things happened on another example some
- 00:35:36of you guys might be aware
- 00:35:38this in the presidential elections in
- 00:35:42the US the taller of the two candidates
- 00:35:47tends to win the electoral vote it's a
- 00:35:50little bit nastier with the with the
- 00:35:53other vote but we like tall apparently
- 00:35:58or tall symbolizes I don't know power or
- 00:36:02authority or something and we tend to
- 00:36:04vote in the person who is tall which is
- 00:36:07really bizarre right I mean it's like
- 00:36:08what if somebody is height and I feel
- 00:36:11bad for myself have anything to do with
- 00:36:13somebody's ability to be president not a
- 00:36:17whole lot and yet the taller candidate
- 00:36:22tends to win the US presidential
- 00:36:24election now some of you guys then are
- 00:36:27thinking of world leaders who may not be
- 00:36:29as tall Sarkozy comes to mind or you
- 00:36:33know when he was in power and I don't
- 00:36:35know how much how much you know about
- 00:36:37Sarkozy but one he first of all he was
- 00:36:39quite short but he tried really really
- 00:36:42hard to make himself tall okay so there
- 00:36:46are pictures and you google it you'll
- 00:36:48see it there are images of him standing
- 00:36:50on on boxes in front of podiums right so
- 00:36:54if there's like a lectern and a mic and
- 00:36:56everything he's standing on a box yeah
- 00:36:59there are press conferences of him in
- 00:37:02like some sort of like company like
- 00:37:06opening a new factory or something like
- 00:37:08that and the the the the story goes they
- 00:37:11called around the entire organization
- 00:37:14looking for the shortest members of the
- 00:37:17organization to be in the photo shoot
- 00:37:19with him so that he wouldn't appear
- 00:37:21quite so short right so there is the
- 00:37:24sense that I want to seem tall and being
- 00:37:28tall conveys good things that people
- 00:37:30like bizarrely enough
- 00:37:37so yeah I don't know whether he had
- 00:37:40heels shoes but yes I mean here again
- 00:37:41notoriously short right um I was just
- 00:37:44about to say Kim jong-il Yi there are
- 00:37:47pictures of him with with these like
- 00:37:48lifts in his shoes but it's to try and
- 00:37:51appear tall thoughts questions examples
- 00:38:01so very good question right so at least
- 00:38:04with regards to these data it's I mean
- 00:38:09except for the last elections is always
- 00:38:11with men between men so we don't know
- 00:38:14and then the comment in the caveat that
- 00:38:18I often give especially with these data
- 00:38:20is who knows nowadays because it's
- 00:38:22becoming more complex with gender coming
- 00:38:24to play with race coming into play that
- 00:38:27said a big picture there's generally a
- 00:38:31big main effect where and this is very
- 00:38:34unfortunate and a whole different story
- 00:38:36men are generally perceived as more
- 00:38:37competent so it is going to be like for
- 00:38:40like but there's also us just a sense
- 00:38:42that men are more competent than women
- 00:38:43which I beg to differ on but several
- 00:38:47story going to share with you two other
- 00:38:53principles the second last one is
- 00:38:57Authority we tend to say yes to people
- 00:39:01who are in positions of authority or
- 00:39:04seem like they're in positions of
- 00:39:06authority
- 00:39:07okay so studies have been done and is
- 00:39:09really scary where somebody dresses up
- 00:39:12like a doctor so they put on a lab coat
- 00:39:15they put on Scrubs they have a set of
- 00:39:18scope and then they'll go into a
- 00:39:20hospital they'll find a nurse and start
- 00:39:23giving random instructions to the nurse
- 00:39:26on how to take care of patients and the
- 00:39:29nurses very often say yes and follow
- 00:39:31through with the instructions
- 00:39:32obviously they stop the nurse before bad
- 00:39:34things happen but the idea is this
- 00:39:37person's seam is like an authoritative
- 00:39:39figure and therefore people say yes to
- 00:39:42what they're saying or what they're
- 00:39:44asking for same things
- 00:39:46opens with regards to a lot of these
- 00:39:50when people start investigating what's
- 00:39:52happened with airplane accidents on very
- 00:39:57often it has to do with the dynamics
- 00:39:59between the copilot and the pilot right
- 00:40:01so you guys may remember some years
- 00:40:03maybe five years ago there was the plane
- 00:40:05that I was I think was a Korean Airlines
- 00:40:08plane that landed in San Francisco and
- 00:40:11thankfully people were generally not
- 00:40:12hurt there were not that many fatalities
- 00:40:15and the plane managed to land fairly
- 00:40:18safely and what happened is that they
- 00:40:21they found out that the Sun was in the
- 00:40:25the pilots eyes but the copilot didn't
- 00:40:28want to put down any sort of shades or
- 00:40:30wear sunglasses because he thought that
- 00:40:32that might be disrespectful to the pilot
- 00:40:35and as a result of that these sort of
- 00:40:37like crazy things happen now I put out
- 00:40:40these examples and we especially for you
- 00:40:42guys I think is useful to think about it
- 00:40:43from two ways one is huh how can I get
- 00:40:47people to do the things that I want them
- 00:40:48to do okay but simultaneously I think
- 00:40:52it's important to realize especially
- 00:40:53with with with people who have a lot of
- 00:40:56a seniority and manage other individuals
- 00:40:58your own seniority your own authority
- 00:41:02could be suppressing your employees
- 00:41:06abilities to think creatively to voice
- 00:41:08their opinions because they're just kind
- 00:41:10of concerned hang on I better not speak
- 00:41:12up against my superior against my boss
- 00:41:14right so we want to think about it from
- 00:41:16there two ways um example that I have to
- 00:41:21mention when it comes to Authority
- 00:41:23anybody heard of the Milgram experiments
- 00:41:28okay this is a good one oh I actually do
- 00:41:31have a little bit of a picture for you
- 00:41:32okay so what happened in the 1950s and
- 00:41:371960s a guy by the name of Stanley
- 00:41:41Milgram wanted to try and understand why
- 00:41:44the atrocities of World War two happened
- 00:41:46and one school of thought was look
- 00:41:49they're just some people who are bad and
- 00:41:51they're bad and that's what it is okay
- 00:41:53they're bad apples and that's there's
- 00:41:55nothing we can do about it there's
- 00:41:57another school of thought that said hang
- 00:41:58on a second there was something about
- 00:42:00the city
- 00:42:00situation that made really good people
- 00:42:03do some really bad things and stanley
- 00:42:05milgram was of that opinion so what did
- 00:42:07he do he ran a study in New Haven Yale
- 00:42:11and where he brought in a bunch of
- 00:42:15people off of the street to be teachers
- 00:42:19okay
- 00:42:20and they were supposed to teach a
- 00:42:23student who is this guy who's actually
- 00:42:27working in collaboration with
- 00:42:30experimenter and the this participant
- 00:42:34was told look you're the teacher that
- 00:42:36person's a student okay and every time
- 00:42:38the student gets the answer wrong you
- 00:42:40need to give them an electric shock okay
- 00:42:42and the this student as you can see was
- 00:42:46hooked up to a bunch of wires and then
- 00:42:48the the teacher had control of a big box
- 00:42:53that had a bunch of flipchart one that
- 00:43:01had a bunch of levers on it from 15
- 00:43:09volts going all the way to 450 volts
- 00:43:14okay now they asked a few psychiatrist
- 00:43:19beforehand so what percentage of the
- 00:43:22people do you think would go all the way
- 00:43:24and the psychiatrist said no no no no
- 00:43:26very few very few okay people are good
- 00:43:28it's only the nutty people the
- 00:43:30psychotics the sociopaths who are gonna
- 00:43:32do that so what's the percentage of
- 00:43:33Psychopaths and sociopaths 1 to 2% of
- 00:43:35the population
- 00:43:36those are the only people who are going
- 00:43:38to go all the way to 450 volts what
- 00:43:41percentage of the people do you think
- 00:43:42went all the way to 450 volts very close
- 00:43:48to thirds 2/3 of the people went all the
- 00:43:52way to 450 volts when the student who
- 00:43:54was not very good at learning got the
- 00:43:57questions wrong again and again this
- 00:43:58person just kept on pressing these
- 00:44:00levers from 15 volts up up up up up up
- 00:44:03up up up they didn't stop when the
- 00:44:06student was screaming in pain faking it
- 00:44:08they didn't stop when the student
- 00:44:10shouted that he had heart condition
- 00:44:13they didn't stop when the student
- 00:44:15fainted dead away right they just kept
- 00:44:18on going why did they do that because
- 00:44:22this guy who was the experimenter was
- 00:44:25standing there in his white lab coat
- 00:44:28with a clipboard there and he never held
- 00:44:31a gun to the guy's head and said you
- 00:44:32have to go nothing like that but just
- 00:44:34prompts along the lines of the the the
- 00:44:37the experiment requires you to continue
- 00:44:38please continue right so they were lots
- 00:44:43of there were verbal prompts but it was
- 00:44:45never anything physical that said you
- 00:44:47have to do this now
- 00:44:49these um participants they were stressed
- 00:44:53out beyond their minds they were
- 00:44:55sweating profusely they were shaking
- 00:44:57they were traumatized from doing it but
- 00:45:00they still did it this is the power of
- 00:45:03authority I will give you one thing to
- 00:45:07think about though keeping in mind the
- 00:45:10idea of commitment and consistency
- 00:45:11imagine if the study had started off
- 00:45:15here my guess is that you would have a
- 00:45:18very different result you probably
- 00:45:21wouldn't have had two-thirds of the
- 00:45:22people giving him a 450 volts of shock
- 00:45:25which by the way was also marked with
- 00:45:26xxx so again combining different types
- 00:45:32of principles can be very very powerful
- 00:45:34I have just a few minutes left with you
- 00:45:40so I want to give you this last idea to
- 00:45:44think about and hopefully that's
- 00:45:47enticing ideas which is that when
- 00:45:52something is limited we want it more and
- 00:45:55that limited can be limited in time
- 00:45:57limited in number it's particularly
- 00:46:00valuable if it's just limited and and
- 00:46:03you'll if you think about it now almost
- 00:46:07all these sort of like places online
- 00:46:10where you can buy tickets do that right
- 00:46:12and even Amazon does that when it's just
- 00:46:14a few more they'll tell you three more
- 00:46:16like by now right or for airline tickets
- 00:46:21you know four more seats at this price
- 00:46:23it's trying to tap into this principle
- 00:46:26of scarcity getting you to say get the
- 00:46:29sense of I need to get in on this action
- 00:46:31now before that opportunity goes away
- 00:46:34auction fever which I study a lot is the
- 00:46:37perfect sort of combination of this
- 00:46:39there's scarcity because in auctions is
- 00:46:41typically one unique item there's time
- 00:46:43pressure because you have to bid very
- 00:46:45quickly on the item goes away and then
- 00:46:48there's competition with other people
- 00:46:49right so this competition increases the
- 00:46:52sense of the scarcity of the item so all
- 00:46:54of that makes it really seemed as though
- 00:46:57this item is really really scarce in
- 00:46:59general we really need to be where this
- 00:47:02adrenaline rush especially in a sort of
- 00:47:04like auction type setting take a break
- 00:47:05think carefully confer with your
- 00:47:07colleagues but fundamentally understand
- 00:47:10your motivations for buying something or
- 00:47:12doing something is it just because it's
- 00:47:14very very rare and very scarce or is it
- 00:47:17because you really wants it now I bring
- 00:47:21this up example give you just a second
- 00:47:22and to something I hadn't realized that
- 00:47:24how perfect the timing for this is but
- 00:47:27even I mean the Black Friday sales which
- 00:47:29are on right now in the UK and then
- 00:47:32they'll start in the u.s. properly
- 00:47:34tomorrow it's all about this idea here
- 00:47:37yeah please
- 00:47:43so they're actually not the buyer
- 00:47:46themselves yeah
- 00:47:47and you give them obviously target price
- 00:47:51restrictions around what they do today
- 00:47:54also they might they might because at
- 00:48:01the end of the day if they're watching
- 00:48:04all of I mean first of all in theory
- 00:48:05you're asking a professional to do it so
- 00:48:07one might hope that they're there for a
- 00:48:09little bit
- 00:48:12yes yes that I have not no I have not to
- 00:48:22see how an agent would do in this
- 00:48:23situation but your example is
- 00:48:26interesting because when I said
- 00:48:27professional then I'm saying okay they
- 00:48:29know something when auctions they know
- 00:48:30how to do all this and in theory there
- 00:48:32should be better off then you asked me
- 00:48:34specifically then I'm gonna be obnoxious
- 00:48:36to say well I know about scarcity I know
- 00:48:38how to like guard again so in theory if
- 00:48:40you train somebody then you're better
- 00:48:43off so but you could train yourself you
- 00:48:44can train an agent does that answer your
- 00:48:47question
- 00:48:53yes understood so that's a very good and
- 00:49:04important distinction right you're
- 00:49:05basically pointing out the fact that
- 00:49:06there are different psychological
- 00:49:08motivations for you as the buyer versus
- 00:49:11an agent as a buyer and for both parties
- 00:49:15there are things that will motivate them
- 00:49:17to keep going but different types of
- 00:49:20things that will keep them going so for
- 00:49:23each of the parties you need to be
- 00:49:25careful of of what the bottom line is
- 00:49:29but you need to put in place different
- 00:49:31safeguards to ensure that they're not
- 00:49:33taken over by auction fever
- 00:49:38if you ask someone to go to the auction
- 00:49:41for you if you tell them up front that
- 00:49:46you want that item
- 00:49:48you know they will feel kind of
- 00:49:50compelled and they will feel this
- 00:49:51implicit liability towards you that if
- 00:49:54they miss out on that item and someone
- 00:49:56takes a problem it's an issue because
- 00:49:58you employ them to get that for you so I
- 00:49:59suppose if you don't tell them what the
- 00:50:02outcomes you want is then probably you
- 00:50:05can eliminate well I mean I think it
- 00:50:07goes back to something that we've said
- 00:50:09before right have very clear bottom
- 00:50:11lines right so that will prevent you
- 00:50:12from getting a bad deal but it may not
- 00:50:15help you to get a good deal yeah I saw a
- 00:50:19hand up yes please
- 00:51:07that's a lovely example thank you yeah
- 00:51:12yeah yeah it taps into all these
- 00:51:15principles which is why it becomes very
- 00:51:17powerful when you're using all of these
- 00:51:19different principles simultaneously I'm
- 00:51:21at time but can I please give you my
- 00:51:24favorite example diamonds so pretty
- 00:51:33yeah timeless classics Beauty fire love
- 00:51:37brilliance women tend to like them what
- 00:51:41do we know about diamonds scarce
- 00:51:45are they really scarce tell me more
- 00:51:48control
- 00:51:49[Music]
- 00:51:52married engagement rings we're not
- 00:51:55something nineteen twenties thirties
- 00:51:58when I think was to this young men get
- 00:52:04married buy an engagement ring when is
- 00:52:06one month I'll be honest at this law
- 00:52:07revenue ticked up very nicely
- 00:52:10they thought we're all something yet nor
- 00:52:12six that's not some campaign it's
- 00:52:17brilliant though okay
- 00:52:18I mean it is genius so that's exactly it
- 00:52:28okay so I mean look time is there are
- 00:52:31tons of diamonds in this world they're
- 00:52:33just loads and loads of diamond in the
- 00:52:34world but De Beers holes control the
- 00:52:37support of the supply of diamonds it
- 00:52:39limits the supply it makes it to be a
- 00:52:42perceived value combined with some
- 00:52:45clever marketing and biggity bam-boom we
- 00:52:47really really want them now I have to
- 00:52:50say this because it's important we're
- 00:52:52looking at the women in the room going
- 00:52:53oh yeah we want these diamonds but you
- 00:52:55guys have the things that you want to
- 00:52:57okay I don't know whether it's the
- 00:52:59iPhone or the watch or the stereo or the
- 00:53:02gadget or the limited edition print or
- 00:53:04whatever it is but you guys women and
- 00:53:07men have things that they covet because
- 00:53:10of scarcity yeah let me just end with
- 00:53:13this final idea here when we think about
- 00:53:16influence and persuasion I've talked a
- 00:53:18lot about these ideas there are other
- 00:53:19things that folk that fall into how it
- 00:53:22is that we can influence and persuade
- 00:53:23people the bottom line if you don't
- 00:53:25remember anything else remember this you
- 00:53:28guys have been trained to strategically
- 00:53:30and think about the content of your
- 00:53:32message yes the content of your message
- 00:53:35is important but when you're trying to
- 00:53:38influence and persuade somebody think
- 00:53:40also about how you're creating that
- 00:53:43relationship how you're framing the
- 00:53:45information that you're conveying
- 00:53:46because that has a huge impact on how it
- 00:53:49is that you influence and persuade
- 00:53:51people I'll stop I'm happy to take
- 00:53:55questions or thoughts but I know that
- 00:53:56I'm also over time
- 00:53:58I think that works from company to
- 00:54:21person perspective if you're doing and
- 00:54:23if you're the one who's doing ago she
- 00:54:25ate you and you're going to someone to
- 00:54:27say yeah they might get caught on the
- 00:54:35consistency but it's in there in danger
- 00:54:36that they'll think actually already done
- 00:54:37you a favor
- 00:54:41right but the way that I'd actually
- 00:54:43think about doing it is if you're trying
- 00:54:45to get in with a company it's hey can I
- 00:54:47have a meeting with you to have a chat
- 00:54:49about something can I buy you a cup of
- 00:54:50coffee right and then from that coffee
- 00:54:53it's the biggest sale after that so it
- 00:54:55doesn't yes they've given you their time
- 00:54:58but you've bought them coffee right yes
- 00:55:02yes
- 00:55:06please
- 00:55:10yeah I guess I what I'm just trying to
- 00:55:17choose to summarize this idea that the
- 00:55:19ideas of influence and persuasion are
- 00:55:20all of this stuff is not necessarily
- 00:55:23around what you're saying so think about
- 00:55:25politicians okay and these like type
- 00:55:27things that we're talking about are the
- 00:55:29attractiveness things about it's not
- 00:55:31that the their actual political
- 00:55:33positions that they're conveying yeah
- 00:55:34okay there's something there but people
- 00:55:37are being persuaded by other things like
- 00:55:39their attractiveness their height so
- 00:55:41that's what I'm trying to convey to you
- 00:55:43that that the message is important and
- 00:55:45the message is particularly important if
- 00:55:47people are motivated to listen to you
- 00:55:50and have the cognitive resources to
- 00:55:52listen to what you have to say but
- 00:55:54especially if they don't have cognitive
- 00:55:56and motivation resources there you want
- 00:55:59to focus on how you're getting to them
- 00:56:02buying them a coffee asking for a little
- 00:56:04bit of time and then asking for more
- 00:56:06time doing them a favor those kinds of
- 00:56:08things and you can question about some
- 00:56:15of the actions off to us well the trap
- 00:56:17comes across as a big some small uncouth
- 00:56:19people don't listen to them exactly
- 00:56:25right so there's a message component but
- 00:56:27there's also how you're delivering it
- 00:56:29absolutely let me stop thank you guys
- 00:56:35very much for your your time and I hope
- 00:56:38you have an interesting rest of your day
- 00:56:42[Applause]
- 00:56:51you
- Influence
- Persuasion
- Cialdini
- Reciprocity
- Commitment
- Social Proof
- Liking
- Authority
- Scarcity
- Negotiation