When Gabriella logs on to Dell's website, she sees a notebook model priced well below $1,000. As she continues through the site to view the other options, she realizes the first one she saw was the cheapest model available, but she of course wants more features. Dell is utilizing
A) bait and switch.
B) price lining.
C) captive pricing.
D) penetration pricing.
E) bait pricing.

Question

Quizplus · Accepted Answer

Bait pricing is a strategy where a company advertises a low-priced item to attract customers to its website or store, with the intention of persuading them to purchase more expensive items once they are engaged. In this scenario, Dell advertises a notebook model at a low price to draw Gabriella in, hoping she will decide to buy a more expensive model with more features after seeing the initial offering. This tactic is designed to attract customers with a low price and then encourage them to spend more.

When Gabriella Logs on to Dell's Website, She Sees a Notebook