A dealer persuades a customer to buy a new car by reducing the price to well below that of his competitors. Once the customer has agreed to buy the car, the terms of the sale are shifted, by lowering the value of the trade-in and requiring the purchase of expensive extra equipment. Now the car costs well above the current market rate. This is an example of the ________ procedure.

Question

Quizplus · Accepted Answer

The lowball procedure involves initially offering a favorable deal to gain agreement and then changing the terms to be less favorable after the commitment has been made.

A Dealer Persuades a Customer to Buy a New Car