A local appliance store is advertising the sale of a 27-inch color TV for only $199. The ad states that this price will apply only to TVs that are in stock and no rain checks will be given
Fifteen minutes after the store opens on the day of the sale of the TV, a customer is told by a sales clerk that all of the TVs selling for $199 have been sold. However, the sales clerk is very happy to show the customer a similar TV for only $399. What pricing strategy is the store implementing and why?
The store is using the bait-and-switch tactic. One item is used as the bait to get customers into the store. Then, for whatever the reason, the customer cannot buy the advertised sale item, so a salesperson shows the customer another item, the switch, usually selling for a higher price. The store was successful in getting the customer into the store. Now, the store is striving to get the customer to spend more money.
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