This week, the principle I address is the one I would translate as the “principle of liking,” which Dr. Cialdini calls “Liking.” As he writes in his book, “as a rule, we most prefer to say yes to the requests of someone we know and like.” As with the other principles, the principle of liking provides a lever that some people might want to exploit to better manipulate our decision-making. And as with the others, we all have an interest in understanding how it works to minimize the chances it will influence our choices.
The author gives the striking example of Tupperware parties, a concept that is far less popular today than it was a few decades ago, but which illustrates well how the principle of liking can strongly encourage us to buy products we probably wouldn’t purchase without that influence. It is indeed difficult to turn down a friend’s invitation to a Tupperware party. Furthermore, the fact that this friend plays the role of host in their own home makes the decision not to buy Tupperware products even more complex. What’s more, every potential buyer and invited friend knows very well that the host will benefit personally from the sale by receiving a commission. In such a context, is it surprising that Tupperware was so successful and that so many people bought its products without really needing them? It’s because we prefer to say yes to the requests of someone we know and like.
We can also be strongly influenced by people who are physically attractive. Social scientists call this phenomenon the “halo effect,” which occurs when a positive characteristic of a person dominates how others perceive them, with physical appearance often being one of those characteristics. According to the author, “research has shown that we automatically assign to good-looking individuals such favorable traits as talent, kindness, honesty, and intelligence.” Are you influenced by someone’s physical appearance?
Furthermore, we naturally like people who are like us, whether in their opinions, personality traits, background, or lifestyle. One observation I’ve made in the past, when we used to meet many business leaders trying to convince us to invest in their companies, is that several of them would mention their admiration for Warren Buffett. I remember some of them telling us they attended the Berkshire Hathaway annual meeting in Omaha every year. In hindsight, I question such statements. I suspect that these executives were telling us what we wanted to hear to build a sense of connection—or at least a relationship of trust—with us.
Another facet of the principle of liking involves the association we make between someone we admire and the products they use or promote. Companies constantly try to associate their products with personalities we like. But what does Roger Federer know more than you or me about cars (he represents Mercedes-Benz), watches (Rolex), or champagne (Moët & Chandon)?
As with the other principles cited by Dr. Cialdini, it is difficult to completely escape the influence of the principle of liking. Nevertheless, this principle serves us well in most day-to-day situations. However, we must remain vigilant and try to identify situations where it might push us toward poor decisions.
When facing an important decision, it is best to focus as much as possible on the merits of the options before us and to try to eliminate emotional factors that may influence us. For example, a few years ago, when my son was choosing a school, I suggested that he develop a chart with objective selection criteria for each of his options. The fact that some of his good friends were going to a particular school was one of those criteria—but certainly not the only one in his assessment.
A similar selection process, in my opinion, applies to an investor’s decisions. Which stocks to buy? Which asset classes to prioritize? These are all decisions likely to be influenced by the principle of liking, and for which it is crucial to base our choices on objective and measurable criteria.
Philippe Le Blanc, CFA, MBA
Chief Investment Officer at COTE 100
Philippe Le Blanc’s Blog is published in
