principles of influence : scarcity and instant influence

PRINCIPLES OF INFLUENCE

Robert B. Cialdini’s

Chapters 7 & 8

UF SFMBA Team 9 Adriana Jaegerman Diego Lopez Francheska Sanchez Tomas Trujillo Shaila Kirpalani

How much

would you pay

for these?

A Beer Gift Box Including:

6 beer bottles

2 tasting goblets

One Purse

What if I told you how much

people actually pay for these?

$84.99

$10,500+

What drives people to make these choices?

People assign more value to opportunities, products,

and information when they are less available

SCARCITY

The

Principle

The Rule of the Few

Westvleteren XII Produced by Trappist monks in Belgium and sold at the abbey of

Saint Sixtus

Westvleteren XII

Can only be purchased by reservation at the abbey

In December 2012 limited quantities were being

sold in U.S. and abroad for a limited time only

The gift box retailed for $84.99 and many stores sold

out the first day they went on sale

Hermès Birkin

Distributed to Hermès boutiques on unpredictable

schedules and in limited quantities.

Hand-sewn, buffed, painted, and polished by the same

craftsman taking several days to finish.

Prices range from $10,500 - $150,000

Waiting lists that can span years

“One craftsman sits in a factory in southern France and starts with the first

stitch, from start to finish. You pay for the craftsmanship”

Ferrari F60 Americas Only 10 were built and all were sold even before the car was

revealed to the public

Scarcity for profit

Limited quantities

Act now!

This also applies to bacon And we know everyone likes bacon…

This principle holds for two reasons

Things that are difficult to attain are typically more

valuable, the availability of an item or experience can

serve as a shortcut cue to its quality.

As things become less accessible, we lose freedom.

Psychological Reactance Theory

We respond to the

loss of freedoms by wanting to have them,

along with goods and

services connected to them,

more than before

Evaluating Information

Limiting access to a message

causes individuals to want to

receive it more and to

become more favorable to it.

Limited information is more

persuasive.

Optimizing Conditions

Scarce items are

heightened in value when

they are newly scarce

Competition: we are most

attracted to scarce

resources when we

compete with others for

them

Instant Influence

Primitive Automaticity

Making decisions without

using all of the relevant

information available.

Modern Automaticity

More choices

Travel more and faster

Relocate frequently

Shorter relationships

All these choices are made possible by

technological progress

Shortcuts Should Be Sacred

Technology is progressing

faster than we can

We are inadequate to

handle abundance of

change, choice and

challenge

Characteristic of modern life

Act fast! But ask yourself, is this really my only choice?

Leaders must be

aware of the

effects of the

SCARCITY

principle

Process information carefully

Influence others with key information

Understand how people process information and use it to make decisions

Use people’s thought process to influence their behavior

Situations in the Workplace

Interviews

Negotiations

Information as a competitive advantage

Promotions

Influence: Science and Practice

Chapter 7 - Scarcity: The Rule of the Few

Chapter 8 - Instant Influence

Robert B. Cialdini

Adriana Jaegerman Diego Lopez Francheska Sanchez Tomas Trujillo Shaila Kirpalani

UF SFMBA Team 9