A key difference between loss leaders and bait-and-switch advertising is based upon whether ________.
A) the strategy is legal
B) competitors are hurt by the offer
C) the retailer intends to sell the advertised good or service
D) ample store traffic is created by the strategy

Question

Quizplus · Accepted Answer

The key difference between loss leaders and bait-and-switch advertising lies in the retailer's intention. Loss leaders are items sold at a loss to attract customers, while bait-and-switch advertising is a deceptive tactic that lures customers with a low-priced item that is not available or inferior in quality, with the intention of selling them a pricier item. Thus, the crucial difference is in the retailer's intention, making option C the best choice. The legality of each strategy, their impact on competitors or store traffic, are not as relevant in determining the difference between these two tactics.

A Key Difference Between Loss Leaders and Bait-And-Switch Advertising Is