When a firm offers a very low price on a product to attract customers to a store, and once in the store, the customer is persuaded to purchase a higher-priced item it is referred to as
A)predatory pricing.
B)deceptive pricing.
C)price discrimination.
D)buyer beware.
E)bait and switch.

Question

Quizplus · Accepted Answer

This tactic is known as bait and switch. The customer is baited with a low price on one product, only to have the switch made to a higher-priced item once in the store. This is considered deceptive pricing and is illegal in many countries.

When a Firm Offers a Very Low Price on a Product