What is the primary mechanism of lowballing in sales?

What is the primary mechanism of lowballing in sales?

• A. Selling at a high price initially
• B. Offering unfair discounts
• C. Inducing a customer to commit and then changing the terms
• D. Promising additional incentives

Answer: (C)

The primary mechanism of lowballing in sales revolves around inducing a customer to make a commitment to a product or service and then altering the terms of that commitment to the seller's advantage. This technique works because once a customer has agreed, they are more likely to follow through with the purchase, even if the conditions have changed to be less favorable. The initial commitment creates a psychological pressure to continue, as people generally dislike backing out of a decision they have made, particularly if they perceive that they have invested time or effort into the process. This strategy leverages principles of commitment and consistency in social psychology, where individuals seek to act consistently with their previous decisions. It exploits the emotional and psychological investment a customer has already made, making it more difficult for them to retract their commitment, thus increasing the likelihood of a purchase even under changed terms that may not be as beneficial to them. The other options do not align with the core concept of lowballing. For example, simply selling at a high price initially doesn’t capture the essence of lowballing, as it does not involve the strategic manipulation of terms post-commitment. Offering unfair discounts lacks the commitment phase that is key to the lowballing tactic, while promising additional incentives does not reflect

The primary mechanism of lowballing in sales revolves around inducing a customer to make a commitment to a product or service and then altering the terms of that commitment to the seller's advantage. This technique works because once a customer has agreed, they are more likely to follow through with the purchase, even if the conditions have changed to be less favorable. The initial commitment creates a psychological pressure to continue, as people generally dislike backing out of a decision they have made, particularly if they perceive that they have invested time or effort into the process.

This strategy leverages principles of commitment and consistency in social psychology, where individuals seek to act consistently with their previous decisions. It exploits the emotional and psychological investment a customer has already made, making it more difficult for them to retract their commitment, thus increasing the likelihood of a purchase even under changed terms that may not be as beneficial to them.

The other options do not align with the core concept of lowballing. For example, simply selling at a high price initially doesn’t capture the essence of lowballing, as it does not involve the strategic manipulation of terms post-commitment. Offering unfair discounts lacks the commitment phase that is key to the lowballing tactic, while promising additional incentives does not reflect