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 __________ technique.

Question

Quizplus · Accepted Answer

The low-ball technique involves initially offering a product or service at a lower price than competitors to lure the customer in, and then increasing the price by adding extra costs or lowering trade-in values, as described in the scenario.

A Dealer Persuades a Customer to Buy a New Car