Wednesday, August 28, 2019

Robert Cialdini

[from an email discussion]

Cialdini's writings are extremely interesting. Here's an interesting story from one of the early chapters of Pre-Suasion, emphasis mine:

In part, the answer involves an essential but poorly appreciated tenet of all communication: what we present first changes the way people experience what we present to them next. Consider how a small procedural difference has improved the bottom line of the consulting business of a Toronto-based colleague of mine. For years, when bidding on a big project, it wasn't unusual to get price resistance from the client, who might propose a 10 percent or 15 percent reduction. That was frustrating, he says, because he never felt comfortable padding the budget to cover this kind of potential pushback on costs. If he did agree to the cut, his profit margin became so thin it barely paid to take the business. If he didn't acquiesce, he either lost the job or produced partners who were initially disgruntled because he wasn't willing to work with them on price.
 
Then, during one proposal meeting, he accidentally hit upon a maneuver that rid him of the problem forever. It wasn't a step-by-step attempt to specify or justify each of the expenses involved in his services; he'd long since given up on that approach, which only brought scrutiny to the bill. Instead, after his standard presentation and just before declaring his ($75,000) fee, he joked, "As you can tell, I'm not going to be able to charge you a million dollars for this." The client looked up from the written proposal he'd been studying and said, "Well, I can agree to that!" The meeting proceeded without a single subsequent reference to compensation and ended with a signed contract. My colleague claims that this tactic of mentioning an admittedly unrealistic price tag for a job doesn't always win the business—too many other factors are involved for that—but it almost always eliminates challenges to the charges.
 
Although he stumbled onto it, my friend is not alone in experiencing the remarkable effects of merely launching a large number into the air and, consequently, into the minds of others. Researchers have found that the amount of money people said they'd be willing to spend on dinner went up when the restaurant was named Studio 97, as opposed to Studio 17; that the price individuals would pay for a box of Belgian chocolates grew after they'd been asked to write down a pair of high (versus low) digits from their Social Security numbers; that participants in a study of work performance predicted their effort and output would be better when the study happened to be labeled experiment twenty-seven (versus experiment nine); and that observers' estimates of an athlete's performance increased if he wore a high (versus low) number on his jersey.

The remarkable thing about this story to me is that it shows a case where persuasion expertise can help a businessman be more ethical (no pressure to pad the initial asking price).

The whole book is full of fascinating stories and ideas. I highly recommend it to anyone who regularly interacts with human beings in a professional or personal capacity. 

-M.
 
 --

I could not love thee dear, so much,
Loved I not honor more.

No comments: