Serge is thinking about buying a new stereo. When the salesperson, Naomi, tells him that his favorite stereo is on sale for $2,000, he agrees to make the purchase. But then, as she starts to ring up the sale, she claims to have made a mistake. "I confused that stereo with another one," she claims. "The stereo you want is actually $2,250." If Serge agrees to purchase the stereo for $2,250, he will have succumbed to which of the following tactics?

Question

Quizplus · Accepted Answer

Lowballing involves initially offering a product at a lower price to attract a customer and then raising the price, often with some excuse, once the customer has agreed to the purchase. This is what happened when Naomi initially told Serge the stereo was $2,000 and then raised the price to $2,250.

Serge Is Thinking About Buying a New Stereo