Page 50 - Decoding Decisions ~ Making sense of the messy middle

50 CHAPTER 4 INFLUENCING THE MESSY MIDDLE

3. Social proof posited by psychologist Robert Cialdini describes the tendency
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to copy the behaviour and actions of other people in situations of ambiguity
or uncertainty. The internet has digitised word-of-mouth reviews and
recommendations, making it much easier for people to rely on social proof
as a shortcut for decision-making. Sometimes we’re conscious of this, for
example if we take the time to read consumer reviews, but often we’re influenced
unconsciously. For example, without thinking, we might click on an ad that

includes a four- or five-star rating, drawn to what appears to be a popular choice.

4. Power of now describes the fact that we tend to want things now rather

than later. Humans are wired to live in the present – our evolutionary survival
hinged on our ability to deal with the problems of the here and now rather
than our ability to plan for the future. This explains why people often find it a
challenge to save for their future. “Power of now” also explains the success of
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instant downloads or 24-hour delivery versus having to wait to get a product. 15

5. Scarcity bias is based on the economic principle that rare or limited resources

are more desirable. As Robert Cialdini states: “The scarcity principle trades on
our weakness for shortcuts”. Scarcity typically takes one of three forms:
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Time limited: when there is a time limit to a product’s
availability, it creates a deadline that makes people act
before the time is up.

Quantity limited: limited or rare supplies are perceived by

people as a threat to their freedom of choice, triggering a
reaction to fight the threat and maintain their access to the
resource.

Access limited: meaning limited access to features like
information, groups, or spaces. Censorship makes people
place a higher value on restricted features because
exclusivity makes them feel special.

13 Caldini, R. B. (1984). Influence – The Psychology of Persuasion. Collins. 14 Thaler, R. T. (1991). “Some Empirical Evidence on Dynamic Inconsistency” in Richard H. Thaler,
ed.. Quasi Rational Economics. New York: Russell Sage Foundation, 127–33. 15 The scientific name for “power of now” is discounting the future, which the economist Richard
Strotz explored in 1955 with his work on hyperbolic discounting and time inconsistent preferences. 16 Caldini, R. B. (1984). Influence – The Psychology of Persuasion. Collins.