Tag: Reciprocation bias

Secrets from the Science of Persuasion

A great animation describing the fundamental principles of persuasion based on the research of Dr. Robert Cialdini, Professor Emeritus of Psychology and Marketing at Arizona State University.

Dr. Cialdini, if you’re not familiar, is the author of Influence: The Psychology of Persuasion and the co-author of the New York Times, Wall Street Journal and Business Week International Bestseller Yes! 50 Scientifically Proven Ways to be Persuasive.

Learning about the six universals that guide human behavior could be the best 12 minutes of your day.

  1. Reciprocity
  2. Commitment
  3. Social Proof
  4. Liking
  5. Authority
  6. Scarcity

An Incredible Offer — But Wait…There’s More

You’ll never look at infomercials the same after reading this post.

Robert Cialdini calls But Wait…There’s More “A wholly fascinating account of a wholly fascinating industry.” If you’re interested in how late night TV infomercials use every psychology trick in the book, you need to read this.

Infomercials are powerful. A thirty-second commercial for Tide doesn’t ask you to do anything. The goal is for you to think about Tide and to associate it with something happy and clean so you’ll pick it up the next time you need washing detergent.

An infomercial, however, requires you take immediate action. One moment you’re sitting on the couch eating potato chips, the next you’ve decided there is really nothing you’d rather have than an ab-machine. How does that happen?

Everything about an infomercial is tested — Whether it’s the price, the number of freebies, the background music, or even the color of the model’s hair — with the sole goal of selling more product. Nothing is left to chance.

Along the way infomercial marketers have picked up an amazing amount of knowledge about how we behave as shoppers and what motivates us to make a purchase.

What can you learn from Ron Popeil, the master infomercial seller?

All the time-tested strategies were on display: he offered bonuses or freebies as incentives, and heightened tensions by warning people that he only had a certain number of units on hand (“supplies are limited!”). He assigned numbers to his customers—”You’re number eight, you’re number nine,” and so on—which gave them the impression that you had to get in line to take advantage of the great deal he was offering up. He employed the classic countdown technique, where he systematically lowered the price as he neared the end of the pitch. and when he was at the very end and started accepting cash, he avoided selling the item to the last batch of eager customers, instead launching into a fresh pitch. To get new people to come over and watch a demonstration, it requires that other people be standing in rapt attention. “Wait, there’s something else i want to show you before you take this home with you,” he might say.

Why does that steak knife cut through a shoe?

Perceived value also comes into play when a demonstrator slices a knife through an old shoe or cement block or uses a pair of shears to cut through a penny. Why would you need your steak knife to cut through a hammer, you ask? You wouldn’t. But in addition to proving to you that the knife is indestructible, it’s raising the perceived value of the product. Somewhere in the recesses of your subconscious, your brain is telling you that if for whatever reason you wanted to cut through a boot, you can rest assured that you have the knife that’s up to the task.

On marketing late at night

One of the early discoveries of infomercials was that they perform better when they were marketed late at night. “Airtime was cheaper, too,” but “viewers defenses started to topple as they grew sleepy.” Boredom also played a role. “When he placed sixty-second commercials during a hit show, the responses were unimpressive. When the programming was lousy, many more people purchased products.”

Reciprocation

“He threw in giveaway after giveaway. He suggested that he would only offer the Dehydrator at such a reasonable price point to people who promised to “tell a friend” about the incredible offer—a classic tactic designed to make the audience feel indebted to him for his act of generosity, which, naturally, they could reciprocate by making a purchase.”

What do infomercials sell?

…What all of these half-hour infomercials have in common, of course, is that they all offer some sort of cure. Late-night pitches aren’t in the business of offering us dresses, trash cans, CD players,or cans of roach spray. They’re in the business of presenting serious problems—and providing us with quick, easy, painless solutions. That blender isn’t just designed to make smoothies. It’s going to save you precious minutes everyday and give you more time with your loved ones. Don’t you want to be a decent human being and spend more time with your family?

There’s a good reason products advertised on infomercials are tied to our emotional well-being, our self-image, and our relationships with others. It gives us a powerful reason to pick up the phone and place an order.

Sex

One of the biggest problems with long-form shows is getting people to stop their channel changing long enough to tune in … A half-hour show requires you to bypass that episode of Cops, rerun of Seinfeld, … and actively watch someone try to sell you something you probably don’t need. That’s why many infomercials have some sort of hook, something that momentarily distracts views and gets them to move their finger off the up/down dial on their remote control.

Sex usually works. What buying real estate has to do with women with big boobs is unclear, but moneymaking products have long features cleavage-bearing babes.

Repetition

Research has demonstrated that subtle repetition is highly effective. In fact, studies have shown that because infomercials expose viewers to the sales message for an extended period of time and do not repeat the same message but go back and rehash the same material while making small changes to the script, the repetition is actually much more powerful.

On manufacturing pricing complexity

Infomercials thrive on complicating purchasing decisions for consumers by bundling items with free offers, bonuses, and rewards. A “but wait, there’s more!” suddenly muddles our perceptions and makes it harder to judge the offer that’s just been presented to us.

What about shipping and handling?

Cleverly, shipping and handling costs are often concealed from viewers until they call. … by the time you learn the amount, you’ve already made the mental decision to buy the toaster oven, you called the 800 number, and you’ve just spent five minutes on the phone placing your order. Are you going to hang up because the shipping was a few $ more than you anticipated?

What’s the deal with the host?

What’s most important is that the host communicates authority. It doesn’t have to be real authority, mind you. Just as TV doctors are used to pitch health-related products, it’s merely the perception of authority that matters most. Clothes matter. … A host with an accent isn’t accidental: Americans perceive English accents as more authoritative … Once you find a host for a show, the time-tested formula often requires the presence of a lackey, someone to play off against the pitchman. This is yet another form of social proof.

Wording matters

And every word counts: Greg Renker pointed out that his infomercials always say “when you call,” not “if you call.” The nuance matters. It suggests the viewer will call—it’s merely a matter of time. … Ever hear the line “if the lines are busy, please call back?” … the mere suggestion of a rush of callers sends people scurrying to the phone.

When you think about it, every element of an infomercial is designed to manipulate you into taking action.

But Wait… There’s More. Much More. For the next 15 minutes, Amazon.com is offering an irresistible special price on But Wait … There’s More!. Buy it. Read it.

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Still curious? Try How Infomercials Persuade.

 

The Ben Franklin Effect

Ben Franklin discovered that a person who has done someone a favor is more likely to do that person another favor than they would be had they received a favor. Or, as Franklin put it: “He that has once done you a Kindness will be more ready to do you another, than he whom you yourself have obliged.” This simple technique can be used to gain your favor or create a sense of indebt to others.

Cognitive dissonance is a state of tension that occurs whenever a person holds two cognitions (ideas, beliefs, attitudes, or opinions) that are psychologically inconsistent.

Dissonance produces an uncomfortable mental state the mind needs to resolve. In resolving dissonance our minds trend towards self-justification which makes it hard to admit mistakes.

Dissonance is a very powerful effect. In the case of the Ben Franklin effect, the dissonance is caused by the subjects’ negative attitude to the other person contrasted with the knowledge they did that person a favor. The easiest way to rationalize why we did someone a favor is to say “that person is not so bad after all.”

In his autobiography, Franklin explains how he curried favor by manipulating a rival legislator when he served in the Pennsylvania legislature in the 18th century:

“Having heard that he had in his library a certain very scarce and curious book, I wrote a note to him, expressing my desire of perusing that book, and requesting he would do me the favour of lending it to me for a few days. He sent it immediately, and I return’d it in about a week with another note, expressing strongly my sense of the favour. When we next met in the House, he spoke to me (which he had never done before), and with great civility; and he ever after manifested a readiness to serve me on all occasions, so that we became great friends, and our friendship continued to his death.”

Still curious? Read more about The Reciprocation Bias.

The Old Give and Take on Wall Street

Reciprocation is so powerful that some people will risk everything and willingly break the law to repay a favor:

Mr. Kumar said he initially rejected Mr. Rajaratnam’s offer, explaining that McKinsey would not allow the separate arrangement. But Mr. Rajaratnam persisted. “People are making fortunes,” he recalled Mr. Rajaratnam saying. “So just keep track of your knowledge and share it with me.”

Mr. Rajaratnam also devised a scheme to hide the arrangement from McKinsey. He suggested that Mr. Kumar open a Swiss bank account in someone else’s name. Mr. Rajaratnam also proposed that the money paid to Mr. Kumar should be re-invested in a Galleon fund in the name of Mr. Kumar’s housekeeper.

Mr. Kumar capitulated, and in 2003 began to pass tips about his clients to Mr. Rajaratnam. “I felt an obligation to try and help him” once he began paying me, Mr. Kumar said.

Source

Reciprocation is the act of returning a favor. You can learn more in Robert Cialdini’s book: Influence: The Psychology of Persuasion.

Robert Cialdini on the Best Persuasion Technique for Job-Seekers

The Monitor spoke with Robert Cialdini, who wrote the now infamous Influence: The Psychology of Persuasion, about his work and its influence.

At one point in the interview, Cialdini talks about the best way job-seekers can use persuasion to help them land a job.

Consistency is a good weapon of influence in job-hunting — the idea being that if you make a public statement, there are strong pressures to stay consistent with that, both internal and external. Let’s say you’ve got a job interview, and you know that you’re among a variety of candidates. Say something like, “I’m very pleased to be here, and I look forward to giving you all the information you’d need to know about me, but before we begin, would you mind telling me why it is that you selected me to interview.” And let them speak. Let them, in a public, active way, describe your plusses. And they will spend much of the rest of the meeting validating what they are on record as having valuing about you, because people want to stay consistent with what they’ve previously claimed. And you’re entitled to that. Why be in the dark?

In his seminal book on the topic, Influence: The Psychology of Persuasion, Cialdini went undercover to learn the tricks mastered by used-car dealers and Fortune 500 executives alike, bringing persuasion research to psychology’s forefront. Cialdini also co-authored a how-to guide, Yes!: 50 Scientifically Proven Ways to Be Persuasive.

Scientifically Proven Ways to Increase Tips in the Service Industry

Tipping is a $40 billion dollar industry in the United States. Yet from the traditional economic perspective, which sees us as rational agents operating in our own interest, tipping waiters, barbers, taxi drivers and other service workers is crazy.

Many food servers depend on tips to make their living. Understanding the variables that affect tipping behavior can make a huge difference on income. Of course, a lot of the variables that influence tipping behavior are outside the servers’s control. For example, customers tend to leave larger tips when the weather is pleasant, when there is desirable background music, and when the restaurant is elegant or in an urban area. Food quality has a large impact. Research also suggests that tipping behavior is affected by customers’ characteristics, including size of the dining party, amount of alcohol consumed, customers’ gender and ethnic background, and method of payment.

However, research also indicates that servers can control some variables that influence tipping behavior.

If you’re a food server try—and if you’re a customer watch out for—the following:

Have your restaurant prime the customer with examples of what a tip would be at 20%
This study examined the role of gratuity guidelines on tipping behavior in restaurants. When diners were finished with their meals, they were given checks that either did or did not include calculated examples informing them what various percentages of their bill would amount to. Results indicated that parties who received the gratuity examples left significantly higher tips than did those receiving no examples. These results and their implications are discussed.

Introduce yourself by name
…wait staff who introduced themselves by name received an average tip of $5.44, or 23 percent of the total bill, and those who used no name were tipped on average about $3.49, or 15 percent of the total bill.

Squat when you first get to the table
Walters should squat down next to the table upon their first trip to the station, Lynn recommended, based on his study at an unnamed casual Mexican restaurant in Houston. Those who squatted received an average tip that was 20 percent higher — $6.40 as compared with $5.18 — than those who stood on their initial visit to the station.

Smile
Servers should give their customers a large smile — with mouth open and teeth showing — while they work.

Approach The Table Often
Walt staff should visit their tables more often, Lynn suggested as another technique, based on a study conducted in the 1970s at a Chicago steak house. Those who approached their tables — just to check up on the customers and not to deliver anything — two times or more received average tips that were 15.6 percent of the total bill, while those who approached the table only to deliver something or take something away received tips that were on average 13.8 percent of the total bill.

Touch your customers
He recommend they touch them lightly on their shoulders when delivering the bill or when returning with change or a credit card. His study for the technique was conducted at a Bennigan’s in Houston. Those who touched their customers for an average of two to four seconds received an average tip of 18 percent, or $3.20, of the total bill, and those who didn’t received a 12-percent average tip, or $2.52.

Give your customers something extra, like a mint
Another controversial technique Lynn recommended is for wait staff to give their customers after-dinner mints, based on his study at a Philadelphia restaurant. Servers who left their customers mints received tips that were on average about 28 percent, or $5.98, of the total bill, and those who left no mints received average tips of 19 percent, or $4.64, of the total bill.

“The technique didn’t work at steak houses with a [per-person] check average over $30,” Lynn said. He added that leaving mints for customers at upscale restaurants seems to have no impact on tips. “But at casual restaurants, it does increase tips,” he insisted. “It works because customers got something free, so they want to repay their servers.”

Compliment your customers
The present study examined the role of ingratiation on tipping behavior in restau- rants. In the study, 2 female food servers waited on 94 couples eating dinner, and either complimented or did not compliment the couples on their dinner selections. Results indicated that food servers received significantly higher tips when complimenting their customers than when not complimenting them. These results and their implications are discussed.

Other ideas? Write “thank-you” or simply draw a smily-face on the bill (to create a likeable impression); Print a picture of someone smiling on the bill, or the American Flag (something most people would associate with happiness); Make paying by Visa the default; If you’re a guy give the bill to the woman and if you’re a woman give the bill a guy; and Tell customers the weather is supposed to be nice tomorrow (take away a subconscious worry).

If you’re interested in learning more about gratuity’s try reading Keep the Change: A Clueless Tipper’s Quest to Become the Guru of the Gratuity. The best book out there on working in a restaurant is Kitchen Confidential.

Sources
– Ingratiation and Gratuity: The Effect of Complimenting Customers on Tipping Behavior in Restaurants
– Tip gratuity scale in server’s favor with simple techniques
– http://www.allacademic.com/meta/p_mla_apa_research_citation/3/0/7/3/0/p307300_index.html

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