Bait and switch advertising

From CEOpedia | Management online

Bait and switch advertising is a deceptive marketing strategy used to lure customers in with an attractive offer, then switch them to a higher priced product or service. This tactic is usually used to increase short-term profits, while leaving customers feeling cheated and dissatisfied.

Example of Bait and switch advertising

For example, a retail store might advertise a low-priced item in order to bring customers in, only to then try to sell them a more expensive item. Similarly, a car dealership might advertise a low-priced car, but not have any available, instead encouraging customers to purchase a more expensive model.

Bait and switch advertising is illegal in many jurisdictions, as it violates consumer protection laws. It can also be considered fraud, as it involves the intention of deceiving a customer.

The following are some of the common tactics used in bait and switch advertising:

  • Offering a low-priced item or service: A company will advertise a low-priced item or service to entice customers, but not actually have any in stock. This can be done through online advertisements, newspaper ads, or in-store promotions.
  • Upselling: This involves offering customers more expensive items than they originally intended to purchase. For example, a retail store might advertise a low-priced item, but then try to upsell customers on a more expensive version.
  • Pressure tactics: This involves pressuring customers into making a purchase by creating a sense of urgency. This can include limited-time offers, countdown timers, or limited availability.
  • False advertising: This involves making false or misleading claims about a product or service. This includes exaggerated or unsubstantiated claims about a product or service’s features, benefits, or prices.

A good example of bait and switch advertising is a retail store advertising a low-priced item in order to bring customers in, only to then try to sell them a more expensive item. The company advertises the low-priced item in order to entice customers, but then tries to upsell them on a more expensive version. They may also use pressure tactics, such as limited-time offers or limited availability, to try to convince customers to make a purchase. Additionally, they may make false or misleading claims about the product or service in order to make it seem more attractive to customers.

When to use Bait and switch advertising

Bait and switch advertising is not recommended by most marketing experts and should only be used as a last resort. It is an unethical practice that leaves customers feeling cheated and dissatisfied. It can also lead to legal action and damage a company’s reputation.

Instead, companies should focus on creating and delivering value to their customers. This includes providing quality products and services, offering fair prices, and providing excellent customer service. Companies should also focus on building relationships with customers, which can lead to long-term loyalty and profits.

Advantages of Bait and switch advertising

Bait and switch advertising can have some advantages for companies, as it can be an effective way to increase sales. For example, it can draw in customers who are looking for a bargain, and it can also be used to upsell customers on more expensive items. Additionally, it can create a sense of urgency, encouraging customers to make a purchase before the offer expires.

However, the advantages are outweighed by the disadvantages, as bait and switch advertising is illegal in many jurisdictions and can lead to customers feeling cheated and dissatisfied. It can also damage a company’s reputation and lead to legal action. For these reasons, it is important for companies to be aware of the risks associated with this tactic and to use it responsibly.

Limitations of Bait and switch advertising

Bait and switch advertising is a deceptive marketing strategy that can have serious consequences for both consumers and businesses. While it can be an effective short-term tactic, it can also have long-term consequences, including legal action and customer dissatisfaction.

The following are some of the limitations of bait and switch advertising:

  • Legal issues: Bait and switch advertising is illegal in many jurisdictions, as it violates consumer protection laws. It can also be considered fraud, as it involves the intention of deceiving a customer.
  • Negative publicity: Bait and switch advertising can lead to negative press and customer dissatisfaction, damaging the reputation of a business.
  • Decreased profits: Bait and switch tactics can increase short-term profits, but can also lead to decreased profits in the long-term. This is because customers who feel cheated are unlikely to return to a business, resulting in lost customer loyalty and potential sales.

Other approaches related to Bait and switch advertising

Bait and switch advertising is just one of the many deceptive marketing tactics used to lure customers into purchasing a more expensive product than they originally intended. Other approaches related to bait and switch include:

  • Stealth pricing: This involves hiding the true cost of a product or service until after the customer has made a purchase. This is often done with additional taxes, fees, or hidden charges.
  • Bundling: This involves packaging two or more products together and offering them at a discounted rate. This can be used to encourage customers to purchase additional items that they may not have otherwise bought.
  • Price discrimination: This involves charging different prices to different customers for the same product or service. This can be done by offering discounts to certain customers, such as seniors or students.
  • Deceptive packaging: This involves using misleading packaging or labeling to make a product appear to be of higher quality than it actually is.

In conclusion, bait and switch advertising is just one of the many deceptive marketing tactics used to increase profits. Other approaches related to bait and switch include stealth pricing, bundling, price discrimination, and deceptive packaging.


Bait and switch advertising — recommended articles
Manipulation advertising — Drip pricing — Captive pricing — Price war — Trade allowance — Prestige pricing — Price stickiness — Tying arrangement — Point of purchase

References

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