In a store, an item is priced extremely low by a dealer, but the salesperson points out the disadvantages of the item and switches customers to items of higher quality and price. What is this pricing policy called?
A) Leader pricing
B) Prestige pricing
C) Bait pricing
D) Odd pricing

Question

Quizplus · Accepted Answer

This is an example of bait pricing, where the low-priced item is used as bait to attract customers to the store, but the salesperson will push them towards higher-priced items. Leader pricing involves discounting a specific product to attract customers and increase sales, while prestige pricing involves pricing products high to convey a sense of luxury or exclusivity. Odd pricing involves setting prices just below a round number to make them appear cheaper. However, this scenario does not fit with any of these pricing policies except bait pricing.

In a Store, an Item Is Priced Extremely Low by a Dealer