Question

Ken and suzy were interested in trading in their four-door sedan for a sportier convertible car. they had successfully negotiated a straightforward trade and had filled out the sales contract. the car salesman took the paperwork to his manager's office for approval but came back looking dejected. "i'm terribly sorry," the car salesman said. "my manager won't let me complete the trade. he says that the convertible is worth much more than your sedan. we can still make a deal, but you will have to pay $5,000 in addition to your trade-in." in this scenario, the salesman is attempting the:

Answer 1

Answer: Low-ball technique

Explanation: The low ball technique is a selling tactics whereby potential customers are drawn to a deal by offering deals at a considerably low initial price. The initial offer is meant to appeal to the customer, get their attention and set their desire on the product to be purchased. After the initial arrangement, then the price is increased, just like in the scenario above, whereby a straight trade-in was initially on the cards, however, this was only to get the buyer to commit to the deal which worked out well before the deal was further increased by an additional $5,000.