What effect does the lowballing tactic have on consumers?

The lowballing tactic is a persuasion strategy often used in sales where an initial lower price is presented to entice a consumer, only for the price to be increased after the consumer commits to the purchase. This approach effectively increases the likelihood that consumers will proceed with the purchase for several reasons.

The initial commitment creates a psychological bond to the decision, leading consumers to feel more invested in following through despite the price increase. This phenomenon is rooted in the principle of commitment and consistency, where individuals strive to act in ways that are consistent with their prior commitments. Once consumers agree to the initial offer, they may justify the higher price or feel compelled to complete the transaction rather than back out, leading to an increased likelihood of purchase.

This tactic exploits the consumer's desire to remain consistent with their commitments and can significantly impact their decision-making process, making them more likely to overlook the price increase and proceed with the purchase.