Page 10 - Harvard Business Review (November-December, 2017)
P. 10

IDEA WATCH TRASH TALK CAN BACKFIRE




                                         MARKETING                                            U.S. VENTURE-
                                                                                              CAPITAL
                                                                                              INVESTMENT
                                         EXPLOITING THE                                       IN CLEAN

                                                                                              TECHNOLOGY
                                         POWER OF                                             DROPPED

                                                                                              FROM NEARLY
         MOTIVATION                      COMPLETE SETS
         TRASH TALK CAN BACKFIRE                                                              17%
         Some CEOs routinely say negative   Some beer retailers let customers buy bottles     OF TOTAL VC
         things about competitors, engaging                                                   INVESTMENT
         in a corporate form of trash talk:   à la carte, filling a six-pack with six different
         Think of Virgin’s Richard Branson   brands of beer. In such cases, how often does    IN 2011 TO
         and T-Mobile’s John Legere.                                                          LESS THAN
         Trash talking is common at lower   someone buy just five?
         organizational levels as well: 57%    In a field study and several lab
         of Fortune 500 employees surveyed
         said it happens in their workplace   experiments, researchers explored
         at least monthly. Past research   people’s drive for complete sets—looking
         suggests that the tactic is effective,
         distracting or upsetting people and   specifically at behaviors around items  8%
         diminishing their performance. But   grouped arbitrarily into “pseudo-sets.”         IN 2016, OWING
         a new study reveals a downside:   In the field study, some donors to the
         Trash talk often instills a desire for                                               IN PART TO THE
         retaliation and inspires the target to   Canadian Red Cross were urged to give       AVAILABILITY OF
         perform better.                 six items that would make up a “global
            In six lab experiments, the                                                       CHEAP NATURAL
         researchers found that participants   survival kit,” while others were asked         GAS AND THE
         who were taunted by someone     simply to donate individual items.
         they believed to be a competitor                                                     FAILURE OF
         (“You’re a total loser”; “I’m going   Members of the first group were seven          SOME HEAVILY
         to crush you”) did better on most   times as likely as members of the second
         computer tasks than participants                                                     VC-FUNDED
         who received neutral messages;   to donate all six items. In one of the lab          CLEANTECH
         they were more motivated than   experiments, subjects could accept each of
         others and sought to see the person                                                  COMPANIES.
         who’d insulted them lose. (Their   four increasingly risky gambles or decline
         ability to think imaginatively was   at any point and cash out; the gambles          “CLEANTECH VENTURE CAPITAL:
                                                                                              CONTINUED DECLINES AND NARROW
         diminished, though, and they    were presented to some as belonging to               GEOGRAPHY LIMIT PROSPECTS,” BY
                                                                                              DEVASHREE SAHA AND MARK MURO
         were likelier to cheat.) “Habitual
         trash-talkers need to recognize that   a set. Those subjects were twice as likely
         they are unintentionally boosting   as others to take the unattractive fourth
         their targets’ motivation and
         performance,” the researchers write.   bet. “Even without providing an explicit
         “[They should] engage in deeper   target or a goal,” the researchers write,
         perspective-taking to gauge the
         interpersonal consequences of their   “pseudo-set framing creates the notion
         rude behavior.”  ■              of a group or set, which alters people’s
             ABOUT THE RESEARCH “Trash-  perceptions of and activates their desire
             Talking: Competitive Incivility
         Motivates Rivalry, Performance, and   for completeness.” It’s an urge upon which
         Unethical Behavior,” by Jeremy A. Yip,
         Maurice E. Schweitzer, and Samir   marketers can capitalize.  ■
         Nurmohamed (Organizational Behavior
         and Human Decision Processes,       ABOUT THE RESEARCH “Pseudo-Set Framing,” by Kate Barasz et al.
         forthcoming)                        (Journal of Experimental Psychology: General, forthcoming)



        28  HARVARD BUSINESS REVIEW NOVEMBER–DECEMBER 2017
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