Bait pricing refers to an advertising strategy used to attract customers by making them think that they will have to pay less for something that costs more. This is a shorter term for bait-and-switch pricing.
This tactic advertises prices that are often surprisingly low, or at least much lower than those which are usually available in the market. In many cases, the business can advertise a product with a very low price and then eventually reveal that the first product shown is not available. In its place, a more expensive substitute may be offered.
There are some cases in which the practice of bait pricing can bring about lawsuits. Depending on laws established in specific territories, it may be possible to sue businesses for false advertising, especially if the business is shown to be completely unable to provide the promised product or service.
Bait-and-switch tactics may also be found in other fields. For instance, employers could use related strategies in order to make prospective applicants think that a company is offering more working benefits than it really is.
Bait pricing may be viewed a form of fraud, but it is not always aimed at tricking the customer. Bait pricing can be used in order to increase awareness about a new product, which is usually consumable or disposable. The product can be offered at a special introductory price for a short period of time, just to make people familiar with it. Bait pricing can also be used for clearance sales.
Reviewed by Ryan Hammill
