MGMD02H3 Final: Session 9: Persuasion & Emotions

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Management (MGM)
Sam J Maglio

Lecture 9: Persuasion Cialdini’s 6 principles of persuasion 1. Authority • Milgram - Continued to chock because the authority figure was present • Lab coat —> hoodie the authority figure goes down • Well known university vs. no name —> change in authority 2. Reciprocity • Once you have received a favour, access to resources or a present, you feel obligated toward the person who generated the gift. • Real-World Example - Charities that give you address labels - Free Food samples (e.g., feel obligated to buy after trying out dress samples) - Car dealers (e.g., Free add-on —> Scale up to the next model) - Drug representatives - Marketing professors • Strategic Implications? - Door in the face (e.g., large request first, then smaller (real) one) - Subjects asked about taking juvenile delinquents to the zoo, then a small donation (versus just the latter) - Results: 50% (vs 17%) donated if they were first asked the larger request - Alternatives to reciprocity interpretation? • Perceptual contrast? —> No; doesn’t work with two different requesters - Residents were asked to put “drive carefully” sign to be put on their lawn. Petition first, then sign = 55% agreed, control condition = 17% —> “Foot in the Door”: Small request first, then larger (real) one 3. Consistency • People align with their clear commitments • Explanation? - Cognitive dissonance - Social pressure • Boundary Conditions - Casual attribution of initial commitment 4. Social proof • People follow the lead of similar others (e.g., which line is the same length?) - Ex. Experimenters placed flyer on windshield of subject’s car. Does the subject litter —> Control (14%), Other flyers on the ground (32%), Other flyers on the ground and subject observes someone litter (54%). - First incident of something is more impactful than the rest • Other Real-World Examples - Pre-filling the tip jar - Restaurants often fill up their most visible room before they seat customers in other rooms. - Laugh tracks (more people start laughing if you hear other people laughing) —> Social proof that “hey, that’s the funny part) 5. Scarcity • People assign more value to opportunities when they are less available - fewer resources, less time to get them = want it more • Ex. Participants were asked to choose a pen from an assortment —> most people chose the one with scarcity —> pattern reverse for East Asians v. N. Americans • Explanations: - Difficult to attain usually equals greater value (quality) - Reaction to posed restriction of choice • Applications - “Limited time only” - “Limit 5 per customer” - Retail store stock and display - Creates sense of scarcity —> create more consumer action 6. Liking • People agree with those they know and like • Also, people want to be like themselves • Applications? - Peer pressure - Sexy sales reps (e.g., sexy women as a drug sales representatives) Subliminal Persuasion James Vicary’s Popcorn/Coke Study - In 1957, the words “Eat popcorn” and “Drink Coke” were flashed every 5 seconds for 1/3 seconding crowded movie theatre —> Popcorn sales increased 18%, Coke 58% - As result, subliminally advertising was banned but —> Vicary lied, the study was never conducted - 81% of people have heard of subliminal advertising, 68% believe it is effective in selling products - “Phone Now” was flashed during a television show to replicate Vicary’s result —> no effect on telephone usage —> viewers felt unusually hungry or thirsty during the show - The words “Lipton Ice” presented, some were “npeic Too” • If you wou
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