Question

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? a. conditional bargains b. predatory pricing c. bait and switch d. price fixing e. price discrimination

Answer 1

Answer: c. Bait and switch

Explanation:

The illegal pricing practiced in the above scenario is referred to as bait and switch. Bait and switch is a sales tactic whereby businesses or companies claims they've certain products which are usually of low prices or quality in order to lure customers to them and when the customers arrive, they usually tell the customers that the goods are not available and tell them to buy an identical good which is costlier.

This is the method used by the hardware store that advertises a 3/8" Black and Decker Power Drill for $29.95 and when the customer gets to the store, it was unavailable and the customer was told to buy Model 3309, which sells for $49.99.