A hardware store advertises a 3/8" Black and Decker Power Drill for $29.95. You enter the store intending to purchase the drill. The salesperson informs you that they are all sold out. She tells you that the sale drills were factory seconds and that if you are going to be doing any kind of serious woodworking, you should buy the Model 3309, which sells for $49.99. This scenario has elements of which type of illegal pricing practice?

Question

Business

Yadiel Spencer

29 May, 14:19

A hardware store advertises a 3/8" Black and Decker Power Drill for $29.95. You enter the store intending to purchase the drill. The salesperson informs you that they are all sold out. She tells you that the sale drills were factory seconds and that if you are going to be doing any kind of serious woodworking, you should buy the Model 3309, which sells for $49.99. This scenario has elements of which type of illegal pricing practice?

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Serenity Chandler · Answer 1

This scenario has elements of Bait and switch pricing practice.

Explanation:

Bait and switch is a marketing trick that attracts customers to sell items that are not available for a similar pricing product at low prices. This is a method of retail sales fraud, although in other ways it takes place. Although many countries include laws against baiting and flipping, not all incidents are fraud.

Many activities are also common in bait and switch-like strategies:

Many unethical brokers in the real estate industry may sell a huge property at a price that is too good for prospective purchasers. The land affected is no longer accessible once it is on board. In restaurants and supermarkets, nearly one-third of fish sold as one species (and thus priced) is also a kind of fish that is less expensive. Hotels have low promotional prices to lure visitors that are eventually impacted by undisclosed resort fees or other unforeseen minimum transparency fees. When trying to collect resumes, recruiters will post appealing and fake jobs.