What is lowballing in psychology?

Low-balling is a technique designed to gain compliance by making a very attractive initial offer to induce a person to accept the offer and then making the terms less favorable. Studies have shown that this approach is more successful than when the less favorable request is made directly.

Which is an example of lowballing?

A classic example of low-balling is when a car dealership lists a car for $14,000 to get you to agree to buy it and later changes the price to $16,000. The low-balling technique is commonly used among salesmen and advertisers. … Low-balling works by ensuring a person’s buy-in at a lower cost.

What does lowballing mean?

transitive verb. 1 : to give (a customer) a deceptively low price or cost estimate. 2 : to give a markedly or unfairly low offer lowballed him in contract negotiations. Other Words from lowball More Example Sentences Learn More About lowball.

What is lowballing in social psychology?

The low-balling technique is a compliance method in which the persuader gets a person to commit to a low-ball offer they have no intention of keeping; then the price is suddenly increased. Since a person has already committed, it is hard to say no to the new higher price demand.

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What is an example of compliance in psychology?

Buying something after being persuaded by a pushy salesperson or trying a particular brand of soda after seeing a commercial endorsement featuring your favorite celebrity are two examples of what is known as compliance.

What is lowballing in auditing?

Lowballing (LB) is the practice of setting audit fees lower than audit costs during the initial year of an audit engagement to better compete for large and prestigious clients (DeAngelo, 1981, Kanodia and Mukherji, 1994, Bruce, 2010, Desir et al., 2014).

Is lowballing illegal?

A: Legally, an asking price is an invitation for purchase offers. It is not an offer to sell at the asking price. However, the unethical business practice of a home seller setting a lowball asking price, which the seller has no intention of accepting, is dishonest.

Where does lowballing come from?

The word works as an adjective too: “He was selling fancy lemonade for two dollars a cup, but I made him a lowball offer, since I only had a quarter in my pocket.” This informal slang word was coined in the US, from a railroad term.

What is the opposite of lowballing?

Verb. To move quickly. highball. run.

How do I make a low offer without insulting?

Lowballing 101: How to Avoid Insulting a Home Seller when Making a Low Offer for Their House or Condo

  1. Make a List of Necessary Improvements. …
  2. Explain Any Issues with the Location. …
  3. Provide Pricing for Comparable Homes in the Area. …
  4. Consider the Seller’s Reasons for Selling.

What is lowball compliance?

Low-balling is a technique designed to gain compliance by making a very attractive initial offer to induce a person to accept the offer and then making the terms less favorable. Studies have shown that this approach is more successful than when the less favorable request is made directly.

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How do you use lowball?

The low-ball technique is a compliance strategy which is used to persuade a person to agree to a request. A person using the technique will present an attractive offer at first. The offer will be attractive enough for the other party to it. Then, before finalising the agreement, the person will then change the offer.

What’s another word for lowball?

Hyponym for Lowball:

approximate, estimate, judge, guess, gauge.

What is compliance in social relationship?

Compliance is behavioral conformity in order to achieve rewards or avoid punishments (Kelman 1958). … Since one can behaviorally adhere to a group standard without personally believing in it, the term is often used to indicate conformity that is merely public rather than private as well.

What is compliance example?

The definition of compliance means following a rule or order. An example of compliance is when someone is told to go outside and they listen to the order. An example of compliance is when a financial report is prepared that adheres to standard accounting principles.

What is compliance in a relationship?

The Effects of Resentful Compliance

Resentful compliance—going along to get along, as it is sometimes called—means doing something somebody else wants you to do even though you do not want to do it.