Question

Jameson purchased an alarm system for his car during a promotion. He considered the price after the promotion to be very attractive. However, he later learned that the firm set an artificially high reference price for the alarm system just before the promotion to make the advertised sale price more attractive. Jameson just experienced:

A) Price discrimination
B) Predatory pricing
C) Price fixing
D) Bait and switch
E) Deceptive pricing

Answer 1

Jameson experienced bait and switch because the company used an artificially high reference price to make the advertised sale price of the alarm system more attractive.

Step-by-step explanation:

The student is experiencing Bait and switch in this scenario.

Bait and switch is a deceptive marketing practice where a company advertises a product or service at a certain price to attract customers, but then tries to sell a different product or service at a higher price. In this case, the company set an artificially high reference price for the alarm system just before the promotion, making the advertised sale price more attractive to Jameson.

To summarize, Jameson experienced bait and switch because the company used an artificially high reference price to make the advertised sale price of the alarm system more attractive.