A computer store regularly advertises a very low price for a well-known brand of disks. When the customers come in, however, the salespeople point out the disadvantages of this particular brand and try to persuade them to buy other disks at much higher prices. This retailer is using:
A) bait pricing.
B) odd-even pricing.
C) psychological pricing.
D) leader pricing.
E) price lining.

Question

Quizplus · Accepted Answer

The scenario described is an example of bait pricing, also known as bait and switch. The store advertises a low price to lure customers in, but then tries to persuade them to purchase a more expensive product.

A Computer Store Regularly Advertises a Very Low Price for a Well-Known