Oct 30, 2010

Interpersonal Influence

Actually this is a piece from my Organization Behavior assignment. Although boring :)it makes me think about my decision making and how companies are using these influences in marketing their products.

Cialdini’s claim's following as the major influencing characteristics...
Reciprocity
Social validation
Commitment/Consistency
Friendship/Liking
Scarcity
Authority

I agree and I will share my experience or thoughts on each of these as seen by me until now.

Reciprocity: In shopping malls I had a new experience, when I was checking out the different flavors of an Ice-cream at one of the parlours. I could not see my favourite one on the shelf but then vendor offered me a sample of another ice-cream. It was definitely not the best but after having the sample I felt as if I owe a favour to the vendor and though a small one I did buy an Ice cream.

Social validation: This is a characteristic that I think individuals follow most, knowingly or unknowingly. I tend to buy a product (eg. Washing liquid) that I see most of my friends using , although I don’t know how TIDE is better than GAIN but still I prefer using Tide as it is used most.

Commitment/Consistency: Back in India I was using Blackberry as my personal phone. When I came to U.S, I had options in terms of I-phone and Blackberry. For a student like me a smart phone like Apple I-phone makes more sense because of its features and applications but I chose Blackberry over I-phone. I guess commitment and consistency influenced my decision. My family and friends associate me with a Blackberry phone and by being committed to same technology I avoided unexpected reactions.

Friendship/Liking: There is no question about this fact. That is why companies like Amway are promoting their products through their own customers and who would be the contact for an individual? Undoubtedly his/her family or friends. Back in India Individuals take Insurance plan from relatives who work for an Insurance company, as they feel more secured and trust the individual.

Scarcity: What can be a better example than a Diamond itself? Rising demands on the face of lower output or scarcity is a fundamental principle of economics. This principal has been inculcated by compliance practitioners in their selling strategies. In India whenever we know that Gas stations are going to be closed over the weekend or fuel prices are going to rise, we tend to get our car tanks full. Moreover possessing something that is scarce also supplements the individual with a sense of authority and uniqueness.

Authority: Consulting is a big business, and why do companies spend mega bucks in taking the advice of individuals whom they do not know? Because they are experts and can make decisions with greater authority. When a commercial tells me about a doctor’s recommendation about using a particular toothpaste I take it more seriously than otherwise. Definitely an authoritative advice influences our decision in making a specific choice.

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