A tire retailer is advertising a very low price on a popular size tire. When a customer comes into the store, the clerk says the low-priced item is sold out, and tries to convince the customer to buy the top-of-the-line model-claiming the low priced model is not a very good buy even at the low price. This is an example of:
A) leader pricing.
B) full-line pricing.
C) value in use pricing.
D) price lining.
E) bait pricing.

Question

Quizplus · Accepted Answer

This scenario is an example of bait pricing, where a low-priced item is advertised with the intention of getting customers in the store, but the product is not actually available or not a good value. The clerk is then trying to sell the customer a more expensive model.

A Tire Retailer Is Advertising a Very Low Price on a Popular