What Makes Facebook Tick?

It's Thursday morning in the Calgary airport and I am about to board AC144 for my 35th flight of 2008 - which partly explains my absence from the blogosphere (the other part I'll explain later).

If you're a Facebook user, you won't be surprised to learn that Stanford is now offering a course called The Psychology of Facebook.

The course is the brainchild of Professor B J Fogg, a pioneering persuasion psychologist who founded the Persuasive Technology Lab at Stanford.

He says: "When Facebook came along I was one of the developers at the launch and what struck me was how there was this new form of persuasion. This mass interpersonal persuasion."

Read the BBC report here

The Only Principles of Persuasion Workshop in Canada

On April 10-11, 2008, the McGill International Executive Institute is presenting the only open Principles of Persuasion Workshop in Canada.

As seminar leader, I am the only one in Canada certified to deliver this workshop, which is based on the lifelong work of Dr. Cialdini, the world's foremost expert on influence and persuasion. He is also the most cited social psychologist alive today.

The PoP workshop is the only evidence-based training of its kind. The workshop examines why people say "yes" to your requests and recommendations, and will provide you with new tools that you can use to more effectively influence clients, customers, partners, colleagues, senior management, donors, etc.

Imagine if you could dramatically improve one skill in the next year?

What's stopping you from taking a break from the office for 1.5 days so that you can return better prepared to tackle your toughest challenges? If you, or someone you know, is interested in attending, please visit www.hrdpop.com or the McGill Executive website for more info.

Seating will be strictly limited.

"This program will help executives make better decisions and use their influence wisely."
- -Charles T. Munger, Vice Chairman Berkshire-Hathaway, Inc.

Big-Time Losers?

Joe Nocera, in the current issue of Play, reveals why owning a franchise in one of the three main sports leagues in U.S. - - football, basketball, and baseball - - is to "enter into a club in which is it nearly impossible to come away a financial loser," even if your team is a perennial dog in the standings.

Nocera's salient point is that with such a limited supply o major-league teams for sale, there will always be a deep-pocketed buyer around the corner willing to pay to become a big-league franchise owner.

It's another classic example of the Scarcity principle, which proves that people want more, and will pay more, for what they can have less of.

Read the full article here.

Jarviked

Stephanie Saul, of the New York Times, explains why Pfizer is being questioned by U.S. lawmakers for its use of Dr. Jarvik, self-proclaimed "inventor of the human heart," as a spokesperson for the world's best-selling drug, Lipitor (2007 worldwide sales of $12.7 billion).

"Pfizer has spent more than $258 million advertising Lipitor since January 2006, most of it on the Jarvik campaign, as the company sought to protect Lipitor, the world’s best-selling drug, from competition by cheaper generics."

In mid-2006, when the ads for Lipitor featuring Dr. Jarvik began appearing, Katie Watson, medical ethicist and commentator for NPR, said that the timing of the ad -- and Dr. Jarvik's endorsement -- are both significant. According to Watson, it was the first time that a doctor has been paid to endorse a prescription drug in an ad.

Now, a congressional committee is listening to ex-colleagues of Dr. Jarvik, many of whom assert that it is Dr. Jarvik's mentors at the University of Utah who rightly deserve credit for inventing the human heart, not Dr. Jarvik. Lawmakers are also addressing complaints that since Dr. Jarvik is not a cardiologist and is not licensed to practice medicine, he is not qualified to recommend Lipitor, a heart disease drug.

It's worth noting one concept from the science of persuasion. Credibility comes from only 2 sources: Expertise and Trustworthiness. The use of an expert spokesperson to bolster your case depends just as much on the former as it does the latter.

With ex-colleagues and congressional investigators now calling Pfizer's use of Jarvik into question, Ian Read, Pfizer’s president of worldwide pharmaceutical operations, has announced that:

“We regret this. Going forward, we commit to ensuring there is greater clarity in our advertising regarding the presentation of spokespeople.”

Full article here.

Why FREE Is The Future of Business

Chris Anderson, editor in chief of Wired and best-selling author of The Long Tail, has just released a preview of his next book FREE! in the current issue of Wired.

Near the end, Anderson beautifully sums up the paradigm shift towards free:

The word is externalities, a concept that holds that money is not the only scarcity in the world. Chief among the others are your time and respect, two factors that we've always known about but have only recently been able to measure properly. The "attention economy" and "reputation economy" are too fuzzy to merit an academic department, but there's something real at the heart of both. Thanks to Google, we now have a handy way to convert from reputation (PageRank) to attention (traffic) to money (ads). Anything you can consistently convert to cash is a form of currency itself, and Google plays the role of central banker for these new economies.

There is, presumably, a limited supply of reputation and attention in the world at any point in time. These are the new scarcities — and the world of free exists mostly to acquire these valuable assets for the sake of a business model to be identified later. Free shifts the economy from a focus on only that which can be quantified in dollars and cents to a more realistic accounting of all the things we truly value today.

Read the full article here.

Measuring and Describing Liking

Hat tip to Benedict Carey at the New York Times for writing this great article on mimicry, a form of the principle of Liking, which affirms that similarity, physical appreance, compliments, contact, and cooperation all are useful elements in the art of being liked, and consequently, persuasive.

An excerpt:

“They [psychologists] have found that immediate social bonding between strangers is highly dependent on mimicry, a synchronized and usually unconscious give and take of words and gestures that creates a current of good will between two people…One reason subtle mimicry is so instantly beguiling may be that it draws on and, perhaps, activates brain circuits involved in feelings of empathy.”

Fascinating. Read the full article here.

Charting Authority in the US Election campaigns

Suzanne Taylor, at Macleans.ca, wrote an interesting piece on the complicated art of persuasion as it relates to the current wide-open presidential nomination races in the United States.

What's significant here is how Taylor discusses the extent to which the principle of Authority in celebrity and editorial endorsements, in popular media, and in new media influences the American voting public.

Taylor cites studies showing that celebrity (e.g. Oprah), editorial (e.g. New York Times), and popular media (e.g. Fox News) endorsements generally do not have a major impact on voting patterns, while research on the power of new media (e.g. YouTube) still remains inconclusive.

Whatever ends up being the most influential medium, Taylor clearly illustrates how Authority is deeply engaged in the leadership race south of the border.



Read the article here.

A Great Start to 2008!

Just wanted to thank everyone for expressing their recent support for Major Persuasion. It's been a great start to 2008, from appearing on CBC's Test The Nation to finishing third in the Best Canadian Business/Finance Blog category at the 2007 Canadian Blog Awards.

My thanks to all!

Sticky Commitments and stickK.com

From the extensive psychological research into goal-setting and commitments, we know for a fact that if you make a commitment that is public, active, and voluntary, you are statistically more likely to follow through.

One of the main questions that people then ask me is, "So, what makes a commitment public, active, and voluntary?" Great question. Now, we have a website that provides the answer. It's called stickK.com.

Based on years of scientific research and development by Yale University researcher Dean Karlan (with co-founders Ian Ayres and Jordan Goldberg), stickK's mission is to "promote healthier and happier living by helping people achieve their personal goals through the signing of Commitment Contracts. Happier people = happier world!"

Not only does stickK integrate the Consistency principle, it takes the science one step further. When you actively, publicly, and voluntarily create a commitment contract, you also choose the stakes that you’re willing to wager on your impending success or failure, such as your valuable reputation PLUS the valuable contents of your wallet (the best part: the site encourages you to give your monetary stakes to charity!). In other words, the Scarcity principle, which proves that we are as motivated by potential loss as we are by potential gain, plays a significant role here as well.

Our own research shows that people are about 7 times more likely to follow through on an active, public, and voluntary goal versus one that is kept private.

stickK.com is a wonderful tool that will transform how individuals set and achieve their goals. It's free. Stakes go to charity. It's a classic win-win-win.

Go ahead... Put a contract out on yourself.

Email Happiness

If you're using Microsoft Outlook as your email client, you must check out Xobni, which just launched an app called Insight that will totally transform your email experience. Think Google Analytics for your inbox. This is by far one of the best applications I have seen. Period.

I signed up for the beta release months ago and now after a few weeks with Xobni, I can't imagine life without it. Usage statistics, instant email search (faster than Google, I promise), and threaded conversation views are just 3 of the the features in a long list that will bring you, once and for all, some email happiness.

Here's why I'm posting. With Xobni not yet open to the public, you must have an invite. I have 5 to share with the first 5 readers who post a comment. This is a limited-number offer.

UPDATE: All the invites are gone.

Finalist at the Canadian Blog Awards

Major Persuasion has been nominated in the Best Business Blog category at this year's Canadian Blog Awards.

Voting is now open for the 2nd and final round of voting. Please take a moment and cast your vote here.

Thanks in advance.

My Results from CBC's "Test The Nation"

Before I divulge my score from Sunday night's Test The Nation on CBC, I need to thank everyone involved, especially Molly, for getting me a spot on the show. First, I was a substitute for the Blogger Team, then I almost joined the Celebrity Look-alikes gang as Ben Stiller, but finally, I was honoured to play for the Cabbies!

My score - 52/60, the highest, by far, on my team.

Congratulations to all. It was a blast!

CBC's "Test the Nation"

Last night, on live TV, I made my national TV debut as a contestant on the CBC's hugely popular Test the Nation quiz show. At the mid-way point of 60 questions, I was in the top 5 (of 216 contestants). It was a huge thrill to be a part of such a production and it reminded me of a previous game show experience when I lived in LA and participated in an episode of Win Ben Stein's Money where I was leading through two rounds but just missed making it to the head-to-head round with the host, Ben Stein. Here are my results from Win Ben Stein's Money:

Episode #2054

First Aired: 1998
Contestants: Heath, Peggy, Reed
Theme/Costume: None
First Round Results: Heath $600, Peggy $0, Reed $400
Second Round Results: Heath $600, Reed $1100
Best of 10: Reed 5, Ben 5
Ben defends: $2900
Reed wins: $2100

As soon as I have the results from my appearance on Test The Nation, I'll post them.

Great Customer Service is a Gift

I believe the next great battle for the fickle consumer's dollar will be fought on the customer service front. Outstanding customer service is one of the most valuable intangible "gifts" that a company can offer.

As Joe Sharkey tells it in his article entitled Travel Bug, the big airlines are a classic example of how an industry just simply isn't getting it when it comes to customer loyalty. “When an airline makes a big mistake, they want to give me more miles. They don’t understand: I really don’t want to get on your plane under the conditions you’re subjecting me to. Give me good service instead.”

And from Arrive, Amtrak's surprisingly well-written in-train magazine, here's a wonderful piece on what some of the best companies - think Zappo's with their legendary free back-and-forth shipping - are doing to keep their customers happy. Enjoy.

Street Smarts

How do you reduce the traffic fatality rate to zero in a city that sees 22,000 cars pass through its main intersection each day? Simple. You remove traffic signals and curbed sidewalks, road signs and most street markings.

"'It works well because it's dangerous,' said Hans Monderman, the Dutch traffic guru who pioneered the theory, which he likens to skaters navigating their way around one another on ice – when there are no lanes and no green lights, people take responsibility for their actions and become better decision-makers. Now other EU cities are trying it: Bohmte, Germany; Ipswich, England; Ostend, Belgium; Ejby, Denmark; and Makkinga, the Netherlands, where a sign at the town entrance reads Verkeersbordvrij (Free of traffic signs)."

Question: is there a principle of persuasion working here to encourage better driving by removing traffic signals and road signs? Of course there is. My vote goes to Consistency, because without the traffic signals, you are forced to take an active role in the safety of all drivers, cyclists and pedestrians.

From The Walrus, Canada's Magazine of the Year, read the entire Street Smarts series here.

What You Can Gain from Loss

There's nothing better than getting it straight from the source. As part of the publiation of his new book Yes! 50 Secrets from the Science of Persuasion, Dr. Cialdini is releasing a series of mini-podcasts. I think this one is the best of the three that are out there so far.

Why?

Because it concisely explains the power of scarcity, starting from Amos Tversky's Nobel Prize-winning research into risk aversion to the ethical use of loss language as an influence tactic.

Participants in my workshops may fight me on this one, but the science has proven over and over that if you use it wisely, scarcity is power. It's deceptively simple, but often overlooked. So if your success depends on your ability to influence, can you really afford not to understand how the principle of scarcity works?

Accentuating the Negative?

This is a classic take on how counterintuitive thinking can garner superior results than just doing the same thing that may (or may not) have worked for others.

Here's a quotation from the article: "In this down-turned market, as more houses stay unsold for longer and longer, a decidedly small niche has emerged in residential real estate marketing: accentuating the negative. Instead of highlighting a home’s attractive features, some sellers are going straight to the bad news, advertising houses as being ugly, having sinkholes or even smelling bad, with the thought that sellers who are forthcoming about a property’s flaws may find buyers eager for a deal."

I like this article because the concept of accentuating the negatives is not only counterintuitive, but it also reminds us that in order to be credible, we must be comfortable sharing the limitations or drawbacks of our offerings.

In the science of persuasion, this means invoking the principle of Authority by revealing your weaknesses earlier on in order to enhance your believability. Being able to disclose the weaknesses (or limitations) of your offer/product/service lets your potential customers know that you are operating from a base of security. There's no denying that if your customers feel secure, they're already trusting you. And once you have trust, well, you know the rest...

Read the article here.

The Science of Relationships

Can scientific study of marriage teach us how to improve our business relationships?

In the December, 2007 issue of the Harvard Business Review, Diane Coutu interviews psychologist John Gottman, whose systematic research and analysis of married couples has provided hard scientific evidence for what makes good relationships.

What he has discovered is that if you want a relationship to blossom and endure over time, then you'll need to demonstrate respect and focus on the positive qualities of the other party. In the workplace, that means working on the social glue that keeps relationships strong. As Gottman says, "within organizations, people have to see each other as human beings."

What must you avoid? Gottman refers to them as the Four Horsemen of the Apocalypse: criticism, defensiveness, stonewalling, and contempt. These four factors are the best predictors of a deteriorating relationship. Why? Because they communicate disgust.

Gottman continues: "You can’t resolve a conflict with your partner when you’re conveying the message that you’re disgusted with him/her. Inevitably, contempt leads to greater conflict and negativity. Our research also shows that people in contemptuous relationships are more likely to suffer from infectious illnesses—flu, colds, and so on—than other people. Contempt attacks the immune system; fondness and admiration are the antidotes."

Read the Executive Summary here.

Dr. Drug Rep

In this past Sunday's New York Times Magazine, a Dr. Carlat details (forgive the pun) the process by which he came to be a paid speaker for the pharma giant, Wyeth, and its anti-depressant drug Effexor.

Why this article? Because it is so loaded with effective examples of how the Principles of Persuasion operate that it almost drowns in them.

Here's an interesting statistic pulled from the article and highlights the pharma companies overt use of peers to influence the prescribing habits of physicians:

"How many doctors speak for drug companies? We don’t know for sure, but one recent study indicates that at least 25 percent of all doctors in the United States receive drug money for lecturing to physicians or for helping to market drugs in other ways. This meant that I was about to join some 200,000 American physicians who are being paid by companies to promote their drugs."

And what's the impact of these physicians speaking to their peers? Here's Carlat's take, after a few talks where he found he was influencing more than he was educating:

"I began to think that the money was affecting my critical judgement. I was willing to dance around the truth in order to make the drug reps happy. Receiving $750 checks for chatting with some doctors during a lunch break was such easy money that it left me giddy. Like an addiction, it was very hard to give up."

Having worked closely as a consultant with a number of pharmaceutical companies over the years, I've always believed that they are among the very best at leveraging the science of influence. In many ways, the pharma companies, whether they know it or not, have been the pioneers when it comes to influence and persuasion.

Read the full article here.

Cialdini at the RSA

Earlier this year, Dr. Cialdini traveled to the London and addressed members of the RSA - Royal Society for the encouragement of Arts, Manufactures and Commerce. It was founded in 1754 and was granted a Royal Charter in 1847. Notable members have included Benjamin Franklin, Karl Marx, Adam Smith, William Hogarth, Charles Dickens and Guglielmo Marconi.

Notwithstanding its establishment credentials, the RSA has always been a radical body which has sought to challenge the status quo and change the world around it. Its founders spoke of the need to "embolden enterprise, enlarge science, refine art, improve our manufactures and extend our commerce", but also of the need to alleviate poverty and secure full employment.

In this RSA lecture, Professor Cialdini delivers a presentation on his recent research into the successful use of social norms to promote pro-environmental action.

It's a little on the long side for one listen, but there are some insightful comments, especially towards the end, when Cialdini conducts an unrehearsed Q & A with the audience. For those of you out there who speak on a regular basis, those Q & A sessions are often the true test of whether you're connecting with your audience. Cialdini nails it.

Download mp3 audio version.

Click here to download a pdf text version of the lecture.

The Science of YES!

Last week, Dr. Cialdini traveled to the UK for the launch of his latest book, Yes! 50 Secrets from the Science of Persuasion.

On sale in the UK as of Novemeber, 2007, and to be released in North America in early 2008, the book identifies the small changes that can make a big difference to your powers of persuasion.

It is co-authored by Dr. Noah Goldstein and Steve Martin. Here's a quote from the authors:

"Yes! is structured around fifty chapters of 1000 words or so each with a practical take away, tip or strategy that anyone can apply to become more persuasive. There are new studies, new insights and we have included an extended final chapter about influence on the internet and influence across differing cultures."

The launch of the book also coincides with a series of podcasts and other goodies, which can all be found at the Science of Yes! website.

Judging from early reviews and comments, Yes! looks like a winner. Check out this review in the London Times.

What's Feeback Worth? Or, Kirkpatrick Levels 1 & 2

For the committed ones out there, I've decided to post the actual post-workshop evaluation summary of the last week's Principles of Persuasion workshop that we held at the McGill International Executive Institute. The ratings are among the highest we've ever seen.

This type of information is rarely shared with outsiders, but I thought it might give some of you a sense of what people are saying right after they finish the workshop.

Note that there are no individual attributions, so all the participants' identities are safe.

I'd like to know what you think: is this a good idea? Is it interesting?

What's Your Box of Crackers?

I've written before about the power of gifts, especially in how they relate to the principle of reciprocity. To refresh: reciprocity tells us that people feel obligated to give back to those who have given to them. In other words, once you've given something significant (and it need not be expensive by the way; in fact some of the most significant "gifts" you can offer to your customers, employees and colleagues actually cost no money at all!), you're able to create and foster more meaningful business relationships built upon the notion of mutual exchange.

Here's a clear example, courtesy of Read/WriteWeb and it illustrates the simple things that service and product providers can give in order to earn just a little bit more customer loyalty and ensure your current customers want to do business with you, and even more importantly, stay with you.

Once you've read the post, ask yourself this question: what did it cost FreshBooks to earn a "customer for a life and yet one more person to sing its praises to the masses"?

And one more thing to ask yourself: are the chances higher or lower that the Freshbooks user who received the crackers, Jonathan, will leave FreshBooks for another provider now that he's gone on the record publicly stating that he is a "customer for life"?

The Audacity of...?

Every once in a while I read something so nuanced, so well-crafted that I smile, and my faith in the news media is restored. This time I can't help but share this outrageously well-written piece from last week's New York Times Sunday Magazine entitled "Is (His) Biography (Our) Destiny?"

The parentheses alone are enough to make you wonder what this piece is about.

Well, I won't give it away - actually, no one can give this article away, the true pleasure is in how well-written it is - but here's the high-level: How is Hillary Clinton, with all her baggage, still sitting alone atop the Democratic presidential candidate polls, while Barack Obama struggles to get his message out?

Full disclosure: I am a Canadian citizen, and am not eligible to vote in US elections. I have not given money to either Barack or Hillary's campaigns, nor to the campaign of any other political candidate.

This is just a great piece that reminds me why I am addicted to the Times.

Gladwell's Back

His first two works, The Tipping Point and Blink, are brilliant, if not profound, and they are the two books I recommend most to colleagues and clients.

His "Warren G. Harding Effect," from Blink, which demonstrates the often overwhelming power of trappings, has found its way into every one of my speeches and presentations this year.

Yep, Gladwell's back online after an 11-month absence. Yay! In his latest piece for the New Yorker, where he's been on staff for years, Gladwell once again takes a deep dive, this time into the strange business of FBI serial killer profiling.

Why the 11-month hiatus? Gladwell says it was "to work on my new book." NEW BOOK!

What I can't believe is that his first two books are still on many major bestseller top 10 lists, over five years after The Tipping Point was first published!

Gladwell.com

Influence for Financial Industry Professionals

From OnWallStreet, a monthly newsletter+magazine targeting the financial advisor community, comes this interview with Dr. Cialdini. It provides a fantastic overview of Cialdini's 6 Principles of Persuasion and how they apply to financial advisors and planners (full disclosure: I have been working with a major financial institution for the past 3 months and I am totally convinced that if there is one industry that can benefit from a better understanding of influence and persuasion, the financial services sector is it!).

My favorite quotation from the article is by Dr. Cialdini himself, and it underscores why the principles are such a critical thinking tool:

"Very few [people] ask, 'When is it wise for another person to say yes to my request?' But if we ask in terms of the wisdom of being persuaded, of choosing to be persuaded, each of the six principles becomes a reason why it would be wise to say yes."

If you're new to the principles, it may help to know that none other than Charlie Munger, Vice-Chairman of Warren Buffett's Berkshire Hathaway, has for years been recommending Cialdini's groundbreaking book, The Psychology of Persuasion, to literally everyone who will listen. In fact, Mr. Munger gave a copy to every single attendee at a speech at Harvard recently, along with this admonition:

"And if you have half as much sense as I think you do, you will immediately order copies for all of your children and several of your friends. You will never make a better investment."

Read the OnWallStreet article here

Why Beggars Earn More Than You

If, as they say, begging for money on the street is no different than selling - both are about getting people to part with their money - then it would come as no surprise that successful beggars are likely invoking the principles of persuasion (unknowingly, I presume). From the Money Matador, then, here are "The 5 Reasons Why Some Beggars Earn More Money Than You" along with my added explanation of how the principles of persuasion are working in each example.

After walking around in big cities in Europe I have discovered the 5 habits of successful beggars.

1. Keep your voice down

Ask for some change, but do not be loud! Be soft spoken, almost silent. By keeping your voice down you force the unlucky by-passer to stop to hear what you have to say. Once they stop, your chance for success increases!

This is the Commitment principle at its most subtlest: once someone has taken a step in your direction (however small), they are much more likely to say yes to your request.

2. Be “honest”

They know you are not going to use their change to buy a bus-ticket. Try to give them a likable reason to give you money.

This works: ”Yo, I’ve been doing drugs for 2 days and really need to eat something, can you spare some change so I can buy me some bread?”

This fails: “Yo, can you spare some change, I need to take the bus”

In the first example you are undressing your soul in front of them, who can resist giving you money? In the latter example you are just lying and they walk away.

The Authority principle and a great example of what Dr. Cialdini calls a "Moment of Power" - right after you admit a weakness or a problem (in this case, doing drugs for 2 days), you trump it with what you're pro-actively doing to remedy the situation.


3. Be clean and nicely dressed

All great salesmen try to imitate the prospective buyer. By dressing similar to the ones you beg from you are bridging the gap between you and them. I know it sounds counter-intuitive, but it is easier to give to your own type! If they meet someone very different from themselves it is easier to just walk away.

Again, the Authority principle, this time the use of trappings to influence behaviour. Trappings are visual cues that communicate something about to you, especially to people who don't know you very well. If you take this to the extreme, you have Malcolm Gladwell's "Warren G. Harding Effect" (i.e., focusing on the wrong cue leaves us vulnerable, in this case voting for a tall, handsome but hapless president), which appears in his latest book Blink


4. Remember a sucker

If someone gives you money you better remember their face. Then you need to acknowledge them every day you see them by greeting them with “Good Morning Sir!”, “Lovely day, eh?” This will remind them about the day they gave you money, and they know you hope that they will give you more. It is painful to walk away from you after you have been nice to them by remembering their face. Two things happen, either they walk another way to work, or they will give you money to ease the tension they feel inside!

Reciprocity, pure and simple: people feel obligated to give back to those who have given to them. In this case, the beggar's gift is simply remembering the giver's name.

5. Learn to love rejection

95% will not give you money. Love it! You get the opportunity to show how good and clever you are. Shout after them “Have a nice day!”, “Thank you, bye”, “No problem, thank you very much Miss”, “Enjoy the rest of your day Sir!”

The result is that they will think: “Oh.. he was pretty nice.. maybe next time..”

Again, it's Reciprocity at play, and some Liking, too. The lesson: never burn your bridges because in this day and age, there will ALWAYS be a next time.

Thanks Money Matador!

Cialdini Testifies before U.S. Congress

On September 25, 2007 Dr. Robert Cialdini, Regents Professor of Psychology and Marketing, testified before the U.S House Committee on Science and Technology regarding his research into the effects of social norms-based messages on energy conservation. He spoke on a similar topic earlier this year at 10 Downing Street to Ministers of the British Cabinet.

Read the official transcript of Dr. Cialdini's testimony here.

Cialdini: Top of the Charts

Dr. Cialdini's groundbreaking book on influence has reached No. 7 on the New York Times Paperback Business Best Sellers list. It's also in the overall top 200 on Amazon. Millions of people can't be wrong. The more I speak about how to ethically apply the science of persuasion, the more interested people (from all industries and walks of life) are in understanding how these incredibly powerful principles can help them be more effective. Congratulations to Dr. Cialdini - what an amazing accomplishment!

Covet Thy Neighbors' Investments?

Mark Hulbert of the New York Times: "The impulse to keep up with Joneses plays an enormous role in the behavior of consumers, whether they’re shopping for clothing or toothpaste, buying a home or deciding which school ought to be entrusted with their children."

In the language of psychology, we call this the power of Social Proof, which tells us that people look to what similar others (read: peers) are doing for guidance in making our decisions.

Hulbert continues: "It turns out that the investing arena is no different. When making changes in their portfolios, people pay a great deal of attention to what their neighbors are doing.

That’s the conclusion of a new study, “Information Diffusion Effects In Individual Investors’ Common Stock Purchases: Covet Thy Neighbors’ Investment Choices,” which appears in the July issue of The Review of Financial Studies. Its authors are Zoran Ivkovich and Scott J. Weisbenner, assistant professors of finance at the University of Illinois."

Read the rest of Hulbert's article here.