Question

Nathan has done a significant amount of research and is now shopping for a new cell phone. After browsing through his options, he decides on a $50 phone. Before finalizing the sale, it is mentioned to Nathan by the salesperson that there is a $20 dollar activation fee as well as a $15 new plan charge. Which of the following is true?

A) A suave salesperson would likely be most effective at convincing Nathan to purchase a particular phone by communicating in a clear manner why a phone was the best.
B) In order to persuade Nathan to buy a particular phone, the salesperson should present to him an argument with peripheral appeal for why that particular phone is best.
C) According to the foot-in-the-door effect, the salesperson influenced Nathan's purchase by demanding that Nathan pay the two additional fees on top of his original purchase.
D) According to the low-ball effect, Nathan will agree to pay the additional charges because he has already agreed to the purchase and would likely see the fees as unavoidable.

Answer 1

This psychological phenomenon suggests that initial agreement sets the stage for acceptance of subsequent less favorable terms. Therefore, The correct option is D) because the low-ball effect predicts that Nathan is likely to agree to the additional charges once he has committed to the initial purchase, perceiving the fees as unavoidable due to his prior commitment.

Step-by-step explanation:

The low-ball effect refers to a persuasion tactic where an individual is initially presented with a favorable deal or offer, and after committing to it, additional and less favorable terms are revealed. In Nathan's case, he chose a $50 phone but was later informed about a $20 activation fee and a $15 new plan charge. Once Nathan has mentally committed to the phone purchase, the additional fees may be perceived as unavoidable, leading him to accept them.

The foot-in-the-door effect, mentioned in option C, involves making a small initial request and then following it up with a larger request. This is not applicable in Nathan's situation as the salesperson did not start with a small request and gradually build up. Instead, the fees were presented after Nathan had already made the decision to purchase the phone.

Peripheral appeal, as mentioned in option B, involves using unrelated factors to persuade someone. However, in this scenario, the additional charges are directly related to the purchase, and peripheral appeal doesn't apply. Option A, which talks about clear communication, is not as relevant in this context because the issue is not about how well the salesperson communicates but rather about the timing of revealing additional charges in the sales process.

In conclusion, the low-ball effect best explains Nathan's situation, where additional charges are introduced after he has mentally committed to the purchase of the phone.