key term - Low-ball technique

Definition

The low-ball technique is a persuasive strategy where an initial offer is made at a low price to entice agreement, but once the target commits, the offer is changed to a higher price or less favorable terms. This method plays on commitment and consistency, as people are more likely to stick with a decision they’ve already made, even if the terms change. It highlights how initial agreements can influence later choices and attitudes, often leading to cognitive dissonance when the individual realizes they’ve been misled.

5 Must Know Facts For Your Next Test

1. The low-ball technique is effective because it leverages the principle of commitment, making people feel invested in their initial decision.
2. Once someone has agreed to the low offer, they may experience cognitive dissonance when faced with the higher cost, often leading them to justify their continued commitment.
3. This technique is commonly used in sales and negotiations, particularly in contexts like car sales and service contracts.
4. Research shows that people are more likely to accept unfavorable terms if they believe they have already made a commitment, regardless of the new conditions.
5. The low-ball technique can lead to buyer's remorse, as individuals may later regret their decision once they realize the terms have changed.

Review Questions

• How does the low-ball technique exploit commitment and consistency in social influence?
  • The low-ball technique exploits commitment by first securing an individual's agreement to a low-priced offer. Once this commitment is made, the individual feels an internal pressure to maintain consistency with their initial decision, even when the terms change. This psychological mechanism makes it difficult for them to back out, leading them to accept the new, higher price despite any negative feelings about the change.
• Discuss the relationship between cognitive dissonance and the low-ball technique, providing examples of how this may manifest in real-life situations.
  • Cognitive dissonance plays a crucial role in the low-ball technique as individuals face conflicting feelings after agreeing to an initial deal that later changes. For instance, if someone commits to buy a car at a low price but is later told it costs more due to additional fees, they might feel uncomfortable about their decision. To reduce this dissonance, they may convince themselves that the car is still worth the new price or rationalize that they need it despite the increased cost.
• Evaluate the ethical implications of using the low-ball technique in persuasive contexts such as sales and marketing.
  • Using the low-ball technique raises important ethical concerns regarding manipulation and trust in persuasive contexts. While it can be effective for businesses aiming to increase sales, it may also lead to consumer dissatisfaction and feelings of deceit if customers feel misled. The long-term relationship between sellers and buyers could suffer due to perceived dishonesty. Therefore, while it can drive short-term gains, employing this strategy can ultimately harm reputations and trust within markets.

Related terms

commitment:

A psychological state where individuals feel obligated to stick to a decision or action they have taken, often influencing their future choices.

cognitive dissonance: The mental discomfort experienced when holding two conflicting beliefs or when behavior contradicts one's values or beliefs.

foot-in-the-door technique:

A compliance strategy where a small request is made first to gain eventual agreement to a larger request.