Low-ball
The low-ball is a persuasion and selling technique in which an item or service is offered at a lower price than is actually intended to be charged, after which the price is raised to increase profits.
An explanation for the effect is provided by cognitive dissonance theory. If a person is already enjoying the prospect of an excellent deal and the future benefits of the item or idea, then backing out would create cognitive dissonance, which is prevented by playing down the negative effect of the "extra" costs.
Low-ball technique
A successful low-ball relies on the balance of making the initial request attractive enough to gain agreement, whilst not making the second request so outrageous that the customer refuses.
- First propose an attractive price on an idea/item which you are confident that the other person/buyer will accept.
- Maximize their buy-in, in particular by getting both verbal and public commitment to this, e.g., a down payment or a handshake.
- Make it clear that the decision to purchase is of their own free will.
- Change the agreement to what you really want. The person/buyer may complain, but they should agree to the change if the low-ball is managed correctly.
Classic low-ball experiment
Cialdini, Cacioppo, Bassett, and Miller (1978) asked students to participate in an experiment. Fifty-six percent of them agreed. After that they were told that the experiment would start at 7:00 AM and that they could withdraw if they chose to. None did so, and 95% turned up at the scheduled time. When a control group was asked to participate and was immediately informed about the very early timing of the experiment, only 24% agreed to participate.[1]
See also
- Bait-and-switch
- Compliance (psychology)
- Door-in-the-face technique
- Foot-in-the-door technique
- Selling technique
- Predatory pricing
References
- ^ Cialdini, R.B.; Cacioppo, J.T.; Bassett, R.; Miller, J.A. (1978). "Low-ball procedure for producing compliance: Commitment then cost". Journal of Personality and Social Psychology. 36 (5): 463–476. doi:10.1037/0022-3514.36.5.463.
- Cialdini, Cacioppo; Bassett, John T.; Miller, Rodney; Miller, John A. (1978). "Low-ball procedure for producing compliance: Commitment, then cost". Journal of Personality and Social Psychology. 36 (5): 463–476. doi:10.1037/0022-3514.36.5.463.
- “The mindlessness of ostensibly thoughtful action: The role of "placebic" information in interpersonal interaction” (pdf)
- Weyant, J. M. (1996). "Application of compliance techniques to direct-mail requests for charitable donations". Psychology and Marketing. 13 (2): 157–170. doi:10.1002/(SICI)1520-6793(199602)13:2<157::AID-MAR3>3.0.CO;2-E.