Question

Which of the following refers to a deceptive pricing tactic in which an advertised price special is used as bait to get customers into the store with the intention of selling them a higher-priced item?

A) Bait and switch.
B) Price lining.
C) Price bundling.
D) Penetration pricing.

Answer 1

The deceptive pricing tactic being described is bait and switch, where a low-priced item is used to attract customers into a store only to be redirected to a higher-priced item.

Step-by-step explanation:

The deceptive pricing tactic referred to in the question is bait and switch. Bait and switch is a technique used by businesses to attract customers with a low-priced item, known as the bait, and then redirect them to a higher-priced item once they are in the store. This tactic is illegal in many countries and can result in fines and legal consequences for the business.

An example of bait and switch would be a store advertising a sale on a specific product at a very low price, but when customers come to buy that product, they are told that it is sold out or of low quality. The store then tries to sell them a more expensive alternative.