Understanding the Bait and Switch Sales Strategy
Shawn's Experience
Shawn saw an ad in the newspaper that showed a new four-door sedan on sale for $14,999. When Shawn arrived at the dealership, he was told the last sales model was just sold but that identical models were available for $16,999.
Shawn's experience at the dealership is a classic example of a sales strategy known as the Bait and Switch. This strategy involves advertising a product at a very attractive price (the bait) to lure customers in, only to then inform them that the advertised product is no longer available or not as good as another product that is actually more expensive (the switch).
What is this sales strategy better known as?
It is the Bait and switch strategy.
Answer:
It is the Bait and switch strategy.
Explanation:
Let's revisit the concept of Bait and Switch strategy before we apply it to explain the strategy applied by the Auto dealer.
The Bait and Switch strategy is the strategy when a company tries to attract customers with a lower-priced product (the "bait"), only to try and sell a similar, yet higher-priced product once the customer is engaged (the switch).
In the described situation, the Auto dealer tries to lure Shawn in with the lower price of the old sedan model which is already sold out. Once he arrives, the Auto dealer tries to sell him the more modern model with a higher price.
What are the steps involved in the Bait and Switch sales strategy? The Bait and Switch strategy typically involves the following steps: 1. Advertising a product at a very attractive price (the bait) to attract customers. 2. Informing customers that the advertised product is either not available or not as good as a similar, more expensive product (the switch). 3. Encouraging customers to purchase the higher-priced product by emphasizing its benefits over the initially advertised product. 4. Making the customer feel like they are still getting a good deal, despite the higher price of the product being sold.