A retail store advertises an SLR digital camera for $350. Once bargain hunters come to the store, salespeople point out the disadvantages of the low-priced camera and try to convince them to trade up to a better, and more expensive, unit. This is an example of
A) price following.
B) bait pricing.
C) odd-even pricing.
D) low pricing.
E) everyday low pricing.

Question

Quizplus · Accepted Answer

This is an example of bait pricing, where a low-priced item is advertised to attract customers, but the salespeople try to convince them to buy a more expensive alternative once they are in the store.

A Retail Store Advertises an SLR Digital Camera for $350