The major difference between a true loss leader and bait-and-switch advertising is based on _____.
A)the legality of the strategy
B)whether sufficient customer traffic is generated
C)whether the good or service is sold in sufficient quantities
D)whether other retailers are injured

Question

Quizplus · Accepted Answer

The major difference between a true loss leader and bait-and-switch advertising is that a true loss leader is legal, while bait-and-switch advertising is illegal. A true loss leader is a sales tactic in which a retailer sells a product at a loss in order to attract customers to their store, with the hope of selling other products at a higher margin. Bait-and-switch advertising, on the other hand, involves advertising a product at a low price to entice customers to come to the store, only to then try to upsell them on a higher-priced item. This practice is illegal because it is considered deceptive advertising. The other choices (B, C, D) do not accurately capture the distinction between a true loss leader and bait-and-switch advertising.

The Major Difference Between a True Loss Leader and Bait-And-Switch