Low-ball technique: Difference between revisions
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The '''low-ball technique''' is a persuasion tactic that involves offering someone an attractive deal, then once they have accepted, renegotiating to make it less favorable. The goal of this technique is to make it difficult for the person to back out of the agreement. This technique works by exploiting the psychological effect of having already committed to something. | The '''low-ball technique''' is a persuasion tactic that involves offering someone an attractive deal, then once they have accepted, renegotiating to make it less favorable. The goal of this technique is to make it difficult for the person to back out of the agreement. This technique works by exploiting the psychological effect of having already committed to something. | ||
The low-ball technique is commonly used in sales, where a salesperson might initially offer a customer a product at a significantly discounted rate, then later raise the price once the customer has already agreed to the deal. It can also be used during negotiations or when making job offers. | The low-ball technique is commonly used in sales, where a salesperson might initially offer a [[customer]] a [[product]] at a significantly discounted rate, then later raise the [[price]] once the customer has already agreed to the deal. It can also be used during negotiations or when making job offers. | ||
The low-ball technique is not always ethical, as it can be seen as manipulative or even dishonest. It is important to be transparent when using this technique, and to make sure that all parties involved understand the terms of the agreement before it is finalized. | The low-ball technique is not always ethical, as it can be seen as manipulative or even dishonest. It is important to be transparent when using this technique, and to make sure that all parties involved understand the terms of the agreement before it is finalized. | ||
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==When to use Low-ball technique== | ==When to use Low-ball technique== | ||
The low-ball technique is best used when trying to close a deal quickly or when dealing with someone who is not familiar with the negotiating process. It can also be useful when trying to get someone to agree to a plan or project, as it can be difficult for them to back out once they have already committed. | The low-ball technique is best used when trying to close a deal quickly or when dealing with someone who is not familiar with the negotiating [[process]]. It can also be useful when trying to get someone to agree to a [[plan]] or [[project]], as it can be difficult for them to back out once they have already committed. | ||
The key to using the low-ball technique effectively is to not be too aggressive in the initial offer. It should be reasonable enough that the other party is likely to accept, but still low enough that you can later negotiate a more favorable outcome. | The key to using the low-ball technique effectively is to not be too aggressive in the initial offer. It should be reasonable enough that the other party is likely to accept, but still low enough that you can later negotiate a more favorable outcome. | ||
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==Disadvantages of Low-ball technique== | ==Disadvantages of Low-ball technique== | ||
* The low-ball technique can be seen as manipulative or dishonest. It is important to be transparent when using this technique, and to make sure that all parties involved understand the terms of the agreement before it is finalized. | * The low-ball technique can be seen as manipulative or dishonest. It is important to be transparent when using this technique, and to make sure that all parties involved understand the terms of the agreement before it is finalized. | ||
* There is always the risk that the person will reject the deal if they feel they have been deceived or manipulated. | * There is always the [[risk]] that the person will reject the deal if they feel they have been deceived or manipulated. | ||
* The low-ball technique can be seen as a sign of weakness, as it suggests that the person is desperate to make a deal. | * The low-ball technique can be seen as a sign of weakness, as it suggests that the person is desperate to make a deal. | ||
==Limitations of Low-ball technique== | ==Limitations of Low-ball technique== | ||
* The low-ball technique may not be effective if the customer is well-informed about the product or service being offered. | * The low-ball technique may not be effective if the customer is well-informed about the product or [[service]] being offered. | ||
* It may also not be effective if the customer is suspicious or mistrustful of the salesperson. | * It may also not be effective if the customer is suspicious or mistrustful of the salesperson. | ||
* In some cases, the customer may feel exploited and resentful towards the salesperson, which could lead to a damaged relationship between the two. | * In some cases, the customer may feel exploited and resentful towards the salesperson, which could lead to a damaged relationship between the two. | ||
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The low-ball technique is a powerful tool that can be used to influence decisions, but it should not be used in a way that is deceptive or manipulative. It is important to ensure that all parties involved understand the terms of the agreement before it is finalized. | The low-ball technique is a powerful tool that can be used to influence decisions, but it should not be used in a way that is deceptive or manipulative. It is important to ensure that all parties involved understand the terms of the agreement before it is finalized. | ||
== | {{infobox5|list1={{i5link|a=[[Personal selling]]}} — {{i5link|a=[[Types of procurement]]}} — {{i5link|a=[[Negotiation techniques]]}} — {{i5link|a=[[Open tender]]}} — {{i5link|a=[[Need for approval]]}} — {{i5link|a=[[Counterpurchase]]}} — {{i5link|a=[[Styles of conflict management]]}} — {{i5link|a=[[Deal flow]]}} — {{i5link|a=[[Manipulation advertising]]}} }} | ||
==References== | |||
* Joule, R. V. (1987). ''[http://www.bulidomics.com/w/images/f/ff/Tabacco-deprivation_joule_1987.pdf Tabacco deprivation: The foot‐in‐the‐door technique versus the low‐ball technique]''. European Journal of Social Psychology, 17(3), 361-365. | * Joule, R. V. (1987). ''[http://www.bulidomics.com/w/images/f/ff/Tabacco-deprivation_joule_1987.pdf Tabacco deprivation: The foot‐in‐the‐door technique versus the low‐ball technique]''. European Journal of Social Psychology, 17(3), 361-365. | ||
* Cialdini, R. B., Cacioppo, J. T., Bassett, R., & Miller, J. A. (1978). ''[https://web.mit.edu/curhan/www/docs/Articles/15341_Readings/Influence_Compliance/Cialdini_et_al_Low-ball.pdf Low-ball procedure for producing compliance: commitment then cost]''. Journal of personality and Social Psychology, 36(5), 463. | * Cialdini, R. B., Cacioppo, J. T., Bassett, R., & Miller, J. A. (1978). ''[https://web.mit.edu/curhan/www/docs/Articles/15341_Readings/Influence_Compliance/Cialdini_et_al_Low-ball.pdf Low-ball procedure for producing compliance: commitment then cost]''. Journal of personality and Social Psychology, 36(5), 463. | ||
[[Category:Marketing]] | [[Category:Marketing]] | ||
Latest revision as of 00:08, 18 November 2023
The low-ball technique is a persuasion tactic that involves offering someone an attractive deal, then once they have accepted, renegotiating to make it less favorable. The goal of this technique is to make it difficult for the person to back out of the agreement. This technique works by exploiting the psychological effect of having already committed to something.
The low-ball technique is commonly used in sales, where a salesperson might initially offer a customer a product at a significantly discounted rate, then later raise the price once the customer has already agreed to the deal. It can also be used during negotiations or when making job offers.
The low-ball technique is not always ethical, as it can be seen as manipulative or even dishonest. It is important to be transparent when using this technique, and to make sure that all parties involved understand the terms of the agreement before it is finalized.
Example of Low-ball technique
The low-ball technique can be used in a variety of situations, but here is an example of how it might be employed in a sales context:
A salesperson might offer a customer a product at a discounted rate, then later add on hidden fees or additional costs once the customer has already agreed to the deal. This can be a way of making it difficult for the customer to back out of the agreement, as they have already committed to the purchase.
When to use Low-ball technique
The low-ball technique is best used when trying to close a deal quickly or when dealing with someone who is not familiar with the negotiating process. It can also be useful when trying to get someone to agree to a plan or project, as it can be difficult for them to back out once they have already committed.
The key to using the low-ball technique effectively is to not be too aggressive in the initial offer. It should be reasonable enough that the other party is likely to accept, but still low enough that you can later negotiate a more favorable outcome.
Types of Low-ball technique
The low-ball technique can take many forms depending on the situation. These can include:
- The Foot-in-the-Door Technique: This involves making an attractive offer to get someone to agree to the initial terms of a deal, then adding more requirements or obligations once the person has already agreed.
- The False-Choice Technique: Here, a person is presented with two choices, both of which are unfavorable or less desirable than the original offer.
- The Bait-and-Switch Technique: This involves presenting an attractive deal, then later changing the terms in order to make it less favorable.
- The Bait-and-Hold Technique: This involves making an offer and then refusing to make any changes or concessions once the person has accepted the deal.
Steps of Low-ball technique
The low-ball technique consists of four distinct steps:
- Step 1: The salesperson presents an attractive offer to the customer. This offer is usually significantly discounted from the original price.
- Step 2: The customer agrees to the offer and makes a commitment.
- Step 3: The salesperson then renegotiates the terms of the agreement, making the offer less favorable.
- Step 4: The customer is now locked in, as it would be difficult to back out of the agreement due to the psychological effect of having already committed.
Advantages of Low-ball technique
- The low-ball technique can be effective in quickly getting a person to agree to a deal. This is especially useful in situations where time is of the essence, such as with job offers or real estate deals.
- This technique can also be used to get an initial agreement from a person, then use that initial commitment to negotiate a better deal.
- The low-ball technique can be used to test a person’s flexibility and willingness to negotiate.
Disadvantages of Low-ball technique
- The low-ball technique can be seen as manipulative or dishonest. It is important to be transparent when using this technique, and to make sure that all parties involved understand the terms of the agreement before it is finalized.
- There is always the risk that the person will reject the deal if they feel they have been deceived or manipulated.
- The low-ball technique can be seen as a sign of weakness, as it suggests that the person is desperate to make a deal.
Limitations of Low-ball technique
- The low-ball technique may not be effective if the customer is well-informed about the product or service being offered.
- It may also not be effective if the customer is suspicious or mistrustful of the salesperson.
- In some cases, the customer may feel exploited and resentful towards the salesperson, which could lead to a damaged relationship between the two.
- Additionally, if the customer is aware of the low-ball technique, they may anticipate it and become less likely to accept the offer.
The low-ball technique is related to several other approaches used in persuasion:
- Foot-in-the-door technique: This is a technique where a person is asked to make a small commitment that is easy to agree to, then after they have done so, they are asked to make a larger commitment.
- Door-in-the-face technique: This is a technique where a person is asked for something that is difficult to agree to, and then if they do not agree, they are asked for something smaller.
- Bait and switch: This is a technique where a person is promised one thing and then given something else.
The low-ball technique is a powerful tool that can be used to influence decisions, but it should not be used in a way that is deceptive or manipulative. It is important to ensure that all parties involved understand the terms of the agreement before it is finalized.
| Low-ball technique — recommended articles |
| Personal selling — Types of procurement — Negotiation techniques — Open tender — Need for approval — Counterpurchase — Styles of conflict management — Deal flow — Manipulation advertising |
References
- Joule, R. V. (1987). Tabacco deprivation: The foot‐in‐the‐door technique versus the low‐ball technique. European Journal of Social Psychology, 17(3), 361-365.
- 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.
