Influence: The Psychology of Persuasion

I got the recommendation of this book from Charlie Munger. Charlie gifted the author a share of Berkshire stock after he and Warren completed reading this book. This sheer instance reflects the importance of this book. This book had a great impact on Charlie’s mindset. It is by far the most valuable book, I have come across in the domain of psychology.

The book broadly covers six psychological principles of influence. These principals are of more significance than ever before in this digital world, where we blindly trust the influencer :D. Let’s go through the principle one by one.

Consistency and commitment: The book narrates some experiments as to how people traps us to say yes to something we wanted to decline on thinking rationally. In the consistency principle people ask some four – five questions whose genuine reply is yes and finally the trump question is thrown at us and we end up agreeing to that blindly. Even after making a commitment especially with our children the toy companies leverage that commitment to churn more sales, will talk about that some other day as to how that happen.

Reciprocation: We give back what we receive. If you need something, give away that first you will have it. For instance, if we receive help from a stranger, we have the tendency to help back. The book sights numerous examples and experiments where people leverage this principle.

Social Proof: When we don’t know how to behave in a particular circumstance, we look around as to how people are behaving and we replicate without even thinking rationally if that’s the correct behaviour. Most of us follow many people blindly. Further since so many people are following hence how can so many people be wrong. It’s difficult to walk along the other way.

Authority: A nurse rarely question a doctor if the treatment is correct. Since doctor is of higher authority how can he be wrong. We blindly perceive them as correct. Just as we follow the Guru’s the messenger of God blindly. 12% of people died of wrong medication and because of this authority principle back in 80’s-90’s in America. We simply stop utilising our brain.

Liking and Scarcity, we discussed them yesterday here.

This books needs to be reread again and again. There lies the true concepts as to how companies play the games with us to make money 😀 The book even narrates as to how Tupperware gain so much popularity in the West. They play with our mind directly. At the it’s all about psychology.