Session 5

Question 1

What are the 6 routes to persuasion (cialdini)? Just name them don’t describe them

Answer 1

1. Liking
2. Reciprocity
3. Consistency
4. Social Proof
5. Authority
6. scarcity

Question 2

Explain the first route: liking. What are four sources of liking?

Answer 2

1. physical attractiveness
2. similarity
   - age, religion etc.
   - chamelon effect = mimicry of postures, manners, facial expressione etc.
3. familiarity
   - mere exposure effect
   - friends
4. liking those who like us
   - praise, compliments etc.
   - smile
   - touch

Question 3

what is reciprocity?

Answer 3

If one recieves something (best: personalized and unexpected), one feels the urge to repay them or give something back. This is also the mechanism through which free samples and free home inspection work. By providing something first, the company is likely to receive something in return from customers.

Question 4

What is consietency?

Answer 4

People fulfill public and voluntary commitments. Asking people to commit to something enhances their likelihood of doing it.

Question 5

what is social proof (reference group?)

Answer 5

“peer pressure” - People follow others by a normative influence (people like to follow others) or by informational influence (what others are doing should be the correct thing to do).

Question 6

What are real life examples of social proof as influence for behaviour?

Answer 6

• testimonials/ reviews
• canned laughter

Question 7

when do online reviews and ratings influence people?

Answer 7

when 1) the situation is ambiguous/risky (and therefore for intangible services more than for tangible products)
2) the reviewer is similar (from the same country, similar age)
3) the review is negative (unless the consumer really wants to buy something, then she or he will skip the negative comments).
4) services more than products

Question 8

How does social proof influence our buying behaviour? (battery experiment)

Answer 8

If strangers are around, social pressure is higher to be altruistic and to buy higher quality products even if they are more expensive

Question 9

How does social proof influence our ordering behavior? (Beijing experiment)

Answer 9

Highlighting the most popular items in the menu increases sales and customer satisfaction as it reduces choice overload and it also signals that this option is approved by others

Question 10

what is authority?

Answer 10

People defer to experts and even alleged experts by others. For instance, real estate agents increased sales by 15% by arranging reception staffs who answer customer inquiries to first mention their expertise: “speak to Pieter our head of sales, he has 20 years of experience selling properties”.

Question 11

What is scarcity?

Answer 11

people want more of what they can have less of. This is true especially when the items were available before and they became scarce because of others’ demand

Question 12

What are three tools for persuasion?

Answer 12

Eye contact
Gestures
Slogans

Question 13

When does eye contact work great for persuasion?

Answer 13

Eye-contact helps when clients agree with the salesperson and are almost buying the product.

Question 14

when do gestures fit for persuasion?

Answer 14

Gestures need to fit the receiver regulatory focus (promotion vs. prevention)

Question 15

what are the two routes to persuasion in the elaboration likelihood model?

Answer 15

Central route
Peripheral route

Question 16

what is the central route?

Answer 16

• more elaborate and effortful
• used by and for high involvement products.
• attitude formation is based on central cues such as strength of arguments, facts, evidence and examples -> results in strong attitude
• less susceptible to misleading advertising

Question 17

what is the peripheral route?

Answer 17

• requires little effort
• attitude formation is based on peripheral cues: number of arguments, source attractiveness, country of origin etc.
• more susceptiple to misleading advertising
• results in weak attitude

Question 18

what is important during persuasion and motivation of goals (small area effect)

Answer 18

The small area hypothesis: In general, we are more motivated the closer we are to a goal. But we can get even more motivated if we focus on the progress already made at the beginning of goal pursuit and on the effort remaining at the end of goal pursuit. When motivating customers to buy more in a loyalty program it is best to say: “you have achieved 30% of the Silver level” and “you have 30% left to move to the Gold level”.
–> always highlight small area

Question 19

What is the handmade effect?

Answer 19

Handmade products are expressions of love and of specialty. Thus, people are more likely to buy a handmade product to give to a close person.

Question 20

Are handmade products/ gifts more appreciated when low or high priced?

Answer 20

Handmade products are better evaluated among high price products and not among low price products

Question 21

What is the peak-end rule and what are its implications on satisfaction?

Answer 21

we remember extreme and recent satisfaction/ experiences more
-> people remember peaks and latest experiences