Car Dealers' Sales Strategy Revealed
What is the sales strategy known as when a customer is lured in with a lower-priced item or offer, only to be told it's no longer available and offered a more expensive alternative?
A. Bait and switch
B. Push money
C. Hook and loop
D. Commission-based selling
Answer:
The sales strategy known as Bait and switch is when a customer is lured in with a lower-priced item or offer, only to be told it's no longer available and offered a more expensive alternative.
Explaining the Sales Strategy:
The sales strategy known as Bait and switch is a deceptive tactic used by some car dealerships (and other businesses) to attract customers in with the promise of a great deal, only to switch the offer once the customer arrives.
In the case mentioned in the quiz question, Shawn saw an ad in the newspaper for a sedan priced at $14,999. However, when he went to the dealership, he was informed that the sale model was sold out and offered an identical model for $16,999 instead.
This tactic is considered unethical and can even be illegal in some cases. It preys on the customer's initial interest in a lower-priced item and attempts to upsell them to a more expensive alternative, often under false pretenses.
Businesses that engage in Bait and switch risk damaging their reputation and losing loyal customers. It is important for consumers to be vigilant and aware of such sales strategies to avoid falling victim to deceptive practices.