Authority Cialdini

According to Cialdini: “People tend to react to authority in an automatic fashion, there is a tendency to do so in response to the mere symbols of authority rather than to its substance. Three kinds of symbols that have been shown by research to be effective in this regard are titles, clothing, and automobiles.”1 There are several ways how Tesla can use authority to increase firm profitability and consumer welfare, and also raise brand awareness.

With the three symbols in mind, Tesla can use techniques to raise profitability and consumer welfare. In terms of clothing (and possibly accessories), Tesla can:

* Provide customers who have purchased any Tesla product with a small case that will include luxurious stationery (pens, notebooks, planners, key chain), with the Tesla brand name on them. They also could give external batteries for customers, who have made a purchase of an automobile.

* Because Tesla sells premium class automobiles, they need to make sure to have their employees (other than those that are required to wear workwear) wear formal clothes and be presentable at all times.

* Partner with sportswear brands. Preferably partner with brands that provide sportswear for more prestigious sports, such as golf, tennis and for yacht sailors. Some of these brands are Brooks Brothers, Dunning Golf, L’etoile Sport, and Henri Lloyd. They can also sign contracts with more affordable brands like Nike, Puma, Adidas and Reebok and raise brand awareness to the younger generation.

In terms of titles, Tesla can:

* Sign a contract with famous racers and have them in ad campaigns. It is best to get involved with racers that are known for the middle-aged adults (for the people in their 40’s and up, since they can probably afford a car like Tesla) and for mature adults. But it will also be beneficial to have a younger racer star in their ads for the young adults, and maybe even teenagers to get them more acquainted with the brand concept and products, so...