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Using Social Proof as a Negotiation Strategy in Business Negotiations
Posted By PON Staff On June 24, 2008 @ 12:00 pm In Business Negotiations,Daily | No Comments
What do we do when we’re uncertain about how to behave in business negotiations? We study the behavior of others in similar situations.
When we look for social proof regarding the “right” way to behave [1], we tend to make quicker, more efficient decisions, writes psychologist Robert Cialdini of Arizona State University.
Popularity makes just about anything seem more appealing. Here’s one anecdote from Cialdini.
Infomercial writer Colleen Szot has a proven knack for getting TV viewers to order items they don’t necessarily need.
Her standard plea for getting people to pick up the phone had been, “Operators are waiting; please call now.”
Then Szot changed just a few words of the line so that it read, “If operators are busy, please call again.”
Amazingly, calls skyrocketed. Why?
Previously, viewers were given the image of operators idly waiting for the phone to ring. The new line conjured an image of phones ringing off the hook. The message: To join the crowd, you’d have to act fast.
In their book Negotiation Genius [2] (Bantam, 2007), Harvard Business School professors Deepak Malhotra [3] and Max H. Bazerman [4] suggest ways that negotiators in different arenas might use the power of social proof to improve their business negotiations [5].
If you’re selling a house, for instance, consider limiting the open house to just one hour so that potential buyers will (hopefully) fill the house and create a buzz. And during initial business negotiations with clients, be sure to provide testimonials from satisfied clients, especially high-profile ones.
Discover step-by-step techniques for avoiding common business negotiation pitfalls when you download a FREE copy of our Business Negotiation Skills: 5 Common Business Negotiation Mistakes [6] special report from Harvard Law School.Article printed from Program on Negotiation at Harvard Law School: http://www.pon.harvard.edu
URL to article: http://www.pon.harvard.edu/daily/business-negotiations/social-proof-as-a-negotiation-strategy-in-business-negotiations/
URLs in this post:
[1] regarding the “right” way to behave: http://pon.harvard.edu/daily/business-negotiations/when-negotiation-goals-backfire/
[2] Negotiation Genius: http://www.pon.org/catalog/product_info.php?products_id=418
[3] Deepak Malhotra: http://pon.harvard.edu/faculty/deepak-malhotra/
[4] Max H. Bazerman: http://pon.harvard.edu/faculty/max-bazerman-pon-executive-committee/
[5] improve their business negotiations: http://pon.harvard.edu/daily/business-negotiations/bringing-outsiders-to-the-negotiating-table/
[6] Business Negotiation Skills: 5 Common Business Negotiation Mistakes: http://www.pon.harvard.edu/freemium/5-common-negotiation-mistakes-and-how-you-can-avoid-them/
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