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, the practice is referred to as price discrimination. bait and switch. deceptive pricing. predatory pricing.

Question

Andy Stanley

Business

26 July, 09:08

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, the practice is referred to as price discrimination. bait and switch. deceptive pricing. predatory pricing.

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Answers (1)

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Hugo Bishop · Answer 1

The answer is bait and switch pricing.

Explanation:

Bait and switch pricing is a form of deceptive pricing that describes the practice whereby customers are lured into a store by offers or claims about the existence of a quality or low priced item which turns out to be unavailable.

The retail store then tries to sell or persuade the customer to buy a similar item at a higher price. This kind of pricing is widely considered as a fraudulent form of retail sales and most countries have laws against it.