Persuasion – understand-culture

War of Currents

Despite its name, the Current War is not happening now, but took place primarily in the late 1800s. It was a war fought between Serbian-born, American-immigrant Nikola Tesla and the American Thomas Edison.

Tesla had difficulty convincing the American public to use his alternating electric current to power their homes and businesses. Alternating current (AC) had the ability to provide electricity over long distances much better than Edison’s direct current (DC), which required power stations to be built close together.

Nevertheless, despite the demonstrable superiority of AC to the spread-out American public, Tesla had great difficulty convincing people to use his system of AC over Edison’s DC. This is because Edison was much better at marketing to the American public. He sold himself as well as his product, and also attempted to discredit AC by incorrectly claiming that it was more dangerous, which he demonstrated by publicly electrocuting stray animals using AC.

As a result of Edison’s marketing campaign DC was the standard electric current for many years. However, this began to change after George Westinghouse, an American engineer and entrepreneur, acquired Tesla’s patents for AC and the induction motor.

Westinghouse was much better at selling AC to Americans than Tesla had been, and the first major victory for Tesla’s current occurred during the Chicago World’s Fair in 1893, in which General Electric, using DC, bid to electrify the fair for $554,000, but lost to Westinghouse, who bid $399,000 using AC.

Shortly after this, Niagara Falls Power Company awarded Westinghouse a contract to begin harnessing the power of the waterfall for use, and on 16 Nov 1896 Buffalo, New York began to be powered by AC from Niagara Falls. General Electric also switched to AC, and it wasn’t long before AC destroyed DC. Even Edison eventually switched to the more productive AC.

Message vs. Messenger

Americans link message and messenger. The message, its form, and its presenter create a unity. In the U.S. business context the presenter takes center stage. Americans believe that “you sell yourself first, then your product or service.”

Problem vs. Opportunity

Americans strive to see problems as opportunities. Competent is that person able to recognize opportunities in difficult situations. In the American business context to be persuasive is to focus primarily on opportunities.

System vs. Particular

Americans are particularistic in their thinking. They prefer to break down complexity into its component parts, in order to focus on what is essential. Americans are skeptical of theory. Facts and experience are far more persuasive.

Past vs. Future

For Americans to be realistic means understanding what is possible. The possible is determined not only by past and present circumstances, but also by the ability to shape a new future. Persuasive is explaining how to move from the present into the future.

Inform vs. Sell

In the U.S. business world to persuade means to sell persuasively. Persuasive argumentation leads the audience to a choice. The audience is then asked to make a decision. Americans ask the so-called closing question in a direct and frontal way. Americans sell.

Zuckerberg

The Social Network (2010). Chronicling the creation of Facebook, this film shows Mark Zuckerberg’s shifting relationships and agreements with co-founders and early partners. The story is marked by frequent renegotiation, legal disputes, and Zuckerberg’s readiness to change or exit agreements as the business evolves, reflecting the American logic of flexibility and ongoing negotiation.

caveat emptor

caveat: may he/she beware. emptor: buyer. caveat emptor is Latin for “Let the buyer beware”. Generally, caveat emptor is the contract law principle that controls the sale of real property after the date of closing, but may also apply to sales of other goods.

The phrase caveat emptor and its use as a disclaimer of warranties arises from the fact that buyers typically have less information than the seller about the good or service they are purchasing. This quality of the situation is known as information asymmetry. Defects in the good or service may be hidden from the buyer, and only known to the seller.

caveat emptor is a short form of Caveat emptor, quia ignorare non debuit quod jus alienum emit: “Let a purchaser beware, for he ought not to be ignorant of the nature of the property which he is buying from another party.”

A common way that information asymmetry between seller and buyer has been addressed is through a legally binding warranty, such as a guarantee of satisfaction.

A Latin term

Buying a used Tesla

Here’s a good example of the need to do your homework, your due diligence, before making a major purchase.