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Lecture 19

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John Bassili

Chapter 15: Lecture 19 Social influence: changes in our behavior that is the result of directindirect influence by others -can be used in clever, shady ways (ex. In car sales) The Low Ball Technique: by giving a price lower than the other dealers to get your deal; at the end they will raise the price after reeling you into a conversation and making it seem as if they have made a deal with you already -Reasons salesperson may come up with it includes option not included, manager says we will lose money, calculation errors, trade in re-appraised lower -This technique works; even though the commitment has broken because they are not offered the same price, they are still more likely to go ahead with the deal WHY? Reason: they have committed themselves to buying the car already once a low price has been offered (psychological commitment: not able to pull back and walk away) What customers should do: Anchor and Adjustchoose a price and pull against it by going in knowing invoice price an
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