http://www.youtube.com/watch?v=YPck9d_Jn-M
This
advert promotes the AXA Sun Life Direct Life Insurance policy. Michael
Parkinson, a respected television presenter, explains that by paying a monthly
premium, you will create a nest-egg for the people you leave behind when you
die.
He
explains that the plan is the most popular in the UK. Through the principle of
social proof, the audience perceives it as a good deal just because many others
have signed up. They see the 0800 number as a favour; contacting the company will
not cost anything. The principle of reciprocity unfolds when a free parker pen
is given to customers who simply enquire, and a free welcome gift and free
first premium are offered for joining. These are favours that must be returned
with the decency of contacting the company for further information. Then, any
over-50 year old is guaranteed to be accepted, provided they pay premiums for
two years before death. This is seen as a favour, because taking out the plan
will not involve the lengthy process of completing health questionnaires. Signing
up invokes the principle of commitment; stopping payments will cancel the
policy, and loved-ones will not receive any cash. Therefore, people enquire
because other people have; sign up because of the free gifts; and continue
paying premiums because they are committed to making a nest-egg.
Research
shows that knowing other people are interested can cause a person to be
interested too. Miller, Bickman and Berkowitz (1969) found that a group of
confederates looking up to a tall building can cause members of the public to stop
and look up too. A favour can be repaid by a greater action; Regan (1971) found
that giving participants a can of coca cola, which cost 10 cents, led to all
but two of the 77 participants buying an average of two raffle tickets, which
cost 25 cents each. The participants felt indebted by the uninvited coca cola,
so felt compelled to buy raffle tickets. People are more confident in their
decision to commit after they have made that commitment. Knox and Inkster
(1968) witnessed betters were more confident that their horse would win after
they placed the bet, compared to just before. This shows that the commitment
justifies the behaviour.
These
studies demonstrate why the advert is persuasive. People contact the company to
see what the fuss is about. They are then swayed by the free gifts because they
are uninvited, so to reduce their indebtedness, they repay the company by
committing to monthly premiums. They ignore the fact that they may pay in more than
what their loved-ones receive, because they see the commitment as a good thing.
The company is helping them to leave a lump-sum behind to ease the stress of
their passing. Social proof, reciprocity and commitment boost the company’s appeal
and cause the person to disregard the economic consequences of the plan.
Knox,
R. E., & Inkster, J. A. (1968). Postdecisional dissonance at post time. Journal of Personality and Social
Psychology, 8, 319-323.
Milgram,
S., Bickman, L., & Berkowitz, O. (1969). Note on the drawing power of
crowds of different size. Journal of
Personality and Social Psychology, 13, 79-82.
Regan,
R. T. (1971). Effects of favour and liking on compliance. Journal of Experimental Social Psychology, 7, 627-639.
Hannah Smith
Hannah Smith
Good analysis, but i think it would read better if you addressed each point individually rather than altogether.
ReplyDelete