Business Negotiations Week - 7 Video - 6

Summary

This video delves into peripheral or indirect methods of influence in negotiations, where decisions are often made unconsciously through mental shortcuts. Key principles discussed include using explanations to trigger compliance, leveraging the contrast principle to make options appear more attractive, and applying reciprocity to prompt concessions. Techniques like 'reject then retreat' and social proof are explored to subtly shape behavior. Additionally, the concept of scarcity is employed to increase perceived value, and commitment consistency encourages compliance. Finally, framing information as losses rather than gains increases urgency. Understanding these techniques helps both influence others and guard against manipulation.

Takeaways

• 😀 Influence can be exerted through two main routes: central (direct) and peripheral (indirect).
• 😀 The peripheral route involves influencing people without them consciously realizing why they are being influenced, using mental shortcuts.
• 😀 Explanations are more persuasive than they might seem, even if the explanation provides little true value. The mere act of explaining makes a difference.
• 😀 The contrast principle involves exaggerating the differences between choices to influence decisions, making one option seem more attractive in comparison to others.
• 😀 Reciprocity plays a significant role in persuasion, as people feel motivated to return favors, even if they are not initially wanted.
• 😀 Using the reject then retreat strategy, where an extreme request is first made and then a smaller one follows, can be an effective influence technique.
• 😀 Social proof, or emulating the behavior of others, can be used to influence decisions. Testimonials and the support of experts or celebrities can increase the persuasiveness of a proposal.
• 😀 Scarcity is a powerful tool in persuasion. When items are perceived as scarce, they are often seen as more valuable, influencing people to act quickly to secure them.
• 😀 Commitment and consistency are key in influencing decisions. Once someone has committed to something small, it is easier to get them to agree to larger commitments.
• 😀 Framing information as a loss rather than a gain increases its impact. People tend to weigh losses more heavily than equivalent gains, making loss-framed information more persuasive.

Q & A

What is the difference between the central and peripheral routes to influence?

The central route involves persuading someone through careful evaluation of information, where the person is motivated and able to process the message. The peripheral route, on the other hand, uses subtle cues and automatic decision-making, relying on mental shortcuts to influence someone when they are less motivated or able to carefully evaluate the message.

How does the peripheral route work when influencing others?

The peripheral route works by influencing others through automatic processes and mental shortcuts, such as stereotyping, using cognitive biases, or offering cues that change attitudes and behaviors unconsciously. These influences occur without the individual realizing why they are making a certain decision.

Why is influence through the peripheral route less durable than through the central route?

Influence through the peripheral route is less durable because the messages processed are not deeply integrated into the person's knowledge structure or mental schemata. As a result, the changes in attitude or behavior are less pronounced and less lasting than those made through careful, central-route processing.

Can the peripheral route influence still work if the person is not motivated to evaluate the message?

Yes, the peripheral route can still work even if the person is not motivated to evaluate the message. Since this route relies on automatic decision-making and subtle cues, the person can still be influenced, often without realizing it.

What is the role of 'explanations' in peripheral influence?

Explanations play a significant role in the peripheral route by encouraging compliance even when the explanation provides little actual value or relevant information. The mere presence of an explanation gives the impression of reason, which can influence others' decisions, as shown by the example of the jewelry store where higher prices were perceived as an indicator of better quality.

What is the contrast principle, and how is it used in influencing others?

The contrast principle, also known as relativity, involves exaggerating the difference between options to make one choice appear significantly better. For example, showing undesirable options first makes the subsequent choices seem more attractive, increasing the likelihood that people will select them. This principle is used in real estate, retail, and other areas where comparisons are made.

How can a decoy option be used in negotiations to influence a decision?

A decoy option can be placed among other offers to make the desired choice seem more attractive by comparison. For instance, when offering a subscription, adding an option that is unattractive or unnecessary can make the other options seem better, thereby guiding the other party to choose the option you want them to.

What is the principle of reciprocity, and how does it apply to negotiations?

Reciprocity is the social norm of returning favors. In negotiations, when one party makes a concession, the other party often feels obligated to make a concession in return. This can be used strategically in negotiations to create a cycle of mutual concessions, leading to agreements that benefit both parties.

What is the 'reject then retreat' strategy, and how does it leverage influence?

The 'reject then retreat' strategy involves starting with an extreme request that is likely to be rejected, followed by a smaller, more reasonable request. This technique works because the second request seems more acceptable in comparison to the first, and the reciprocity principle encourages the other party to make a concession in response.

How do social comparisons or social proof influence decisions?

Social comparisons, or social proof, occur when individuals look to others' behavior to guide their own. When others are laughing, buying, or acting a certain way, we tend to follow suit. In influence tactics, testimonials, endorsements from experts, or approval from respected figures increase the credibility of a proposal, making others more likely to follow.