This effect is prominent in ambiguous social situations where people are unable to determine the appropriate mode of behavior, and is driven by the assumption that surrounding people possess more knowledge about the situation.
social influence can be seen in the tendency of large groups to conform to choices which may be either correct or mistaken, a phenomenon sometimes referred to as herd behavior.
Although social proof reflects a rational motive to take into account the information possessed by others, formal analysis shows that it can cause people to converge too quickly upon a single choice, so that decisions of even large groups of individuals may be grounded in very little information as seen in information cascades.
Social proof is a type of conformity. When a person is in a situation where they are unsure of the correct way to behave, they will often look to others for cues concerning the correct behavior.
When "we conform because we believe that other's interpretation of an ambiguous situation is more accurate than ours and will help us choose an appropriate course of action," it is informational social influence.
This is contrasted with normative social influence wherein a person conforms to be liked or accepted by others.
Social proof often leads not only to public compliance (conforming to the behavior of others publicly without necessarily believing it is correct) but also private acceptance (conforming out of a genuine belief that others are correct).
Social proof is more powerful when being accurate is more important and when others are perceived as especially knowledgeable.
ARTICLE SOURCE: http://en.wikipedia.org/wiki/Social_proof
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