The Principle of Scarcity:
Highlight unique benefits and exclusive information.
Study after study shows that items and opportunities are seen to be more valuable as they become less available. That’s a tremendously useful piece of information for managers. They can harness the scarcity principle with the organizational equivalents of limited-time, limited-supply, and one-of-a-kind offers. Honestly informing a coworker of a closing window of opportunity—the chance to get the boss’s ear before she leaves for an extended vacation, perhaps—can mobilize action dramatically.
Managers can learn from retailers how to frame their offers not in terms of what people stand to gain but in terms of what they stand to lose if they don’t act on the information. The power of “loss language” was demonstrated in a 1988 study of California home owners written up in the Journal of Applied Psychology. Half were told that if they fully insulated their homes, they would save a certain amount of money each day. The other half were told that if they failed to insulate, they would lose that amount each day. Significantly more people insulated their homes when exposed to the loss language. The same phenomenon occurs in business. According to a 1994 study in the journalOrganizational Behavior and Human Decision Processes, potential losses figure far more heavily in managers’ decision making than potential gains.
In framing their offers, executives should also remember that exclusive information is more persuasive than widely available data. A doctoral student of mine, Amram Knishinsky, wrote his 1982 dissertation on the purchase decisions of wholesale beef buyers. He observed that they more than doubled their orders when they were told that, because of certain weather conditions overseas, there was likely to be a scarcity of foreign beef in the near future. But their orders increased 600%when they were informed that no one else had that information yet.
The persuasive power of exclusivity can be harnessed by any manager who comes into possession of information that’s not broadly available and that supports an idea or initiative he or she would like the organization to adopt. The next time that kind of information crosses your desk, round up your organization’s key players. The information itself may seem dull, but exclusivity will give it a special sheen. Push it across your desk and say, “I just got this report today. It won’t be distributed until next week, but I want to give you an early look at what it shows.” Then watch your listeners lean forward.
Allow me to stress here a point that should be obvious. No offer of exclusive information, no exhortation to act now or miss this opportunity forever should be made unless it is genuine. Deceiving colleagues into compliance is not only ethically objectionable, it’s foolhardy. If the deception is detected—and it certainly will be—it will snuff out any enthusiasm the offer originally kindled. It will also invite dishonesty toward the deceiver. Remember the rule of reciprocity.
Putting It All Together
There’s nothing abstruse or obscure about these six principles of persuasion. Indeed, they neatly codify our intuitive understanding of the ways people evaluate information and form decisions. As a result, the principles are easy for most people to grasp, even those with no formal education in psychology. But in the seminars and workshops I conduct, I have learned that two points bear repeated emphasis.
First, although the six principles and their applications can be discussed separately for the sake of clarity, they should be applied in combination to compound their impact. For instance, in discussing the importance of expertise, I suggested that managers use informal, social conversations to establish their credentials. But that conversation affords an opportunity to gain information as well as convey it. While you’re showing your dinner companion that you have the skills and experience your business problem demands, you can also learn about your companion’s background, likes, and dislikes—information that will help you locate genuine similarities and give sincere compliments. By letting your expertise surface and also establishing rapport, you double your persuasive power. And if you succeed in bringing your dinner partner on board, you may encourage other people to sign on as well, thanks to the persuasive power of social evidence.
The other point I wish to emphasize is that the rules of ethics apply to the science of social influence just as they do to any other technology. Not only is it ethically wrong to trick or trap others into assent, it’s ill-advised in practical terms. Dishonest or high-pressure tactics work only in the short run, if at all. Their long-term effects are malignant, especially within an organization which can’t function properly without a bedrock level of trust and cooperation.