What is a marketing tactic where a store advertises a popular item at a discount but has very limited stock, hoping to sell customers different, less-desired items?
A. Broad sale
B. Trial and error
C. Consumer discount
D. Decoy pricing
Answer (2)
The marketing tactic described is known as decoy pricing, where a store advertises a popular item at a discount with limited stock to attract customers. This typically leads customers to buy less-desired alternatives available in the store. The selected answer is D. Decoy pricing.
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The marketing tactic you are describing is commonly known as 'bait and switch'. However, from the given options, none of them directly name this tactic. Instead, this is a well-known deceptive practice where a store advertises an item at a lower price but has limited stock, hoping to sell customers different, more expensive or less-desired items instead.
(1) Broad Sale: This option typically refers to a wide-ranging discount strategy affecting many products or services, rather than a single item.
(2) Trial and Error: This is a problem-solving method and does not specifically relate to marketing.
(3) Consumer Discount: This is a general term for giving a price reduction to consumers, but it doesn't specify the tactic of advertising low stock items.
(4) Decoy Pricing: This is a strategy where a business offers another product with a similar price point to make other offers look better in comparison, but it doesn't match the description provided.
When considering the intention to lure customers with a discounted item but limited stock, it resembles 'bait and switch'. Unfortunately, none of the given options match this tactic exactly. However, understanding 'bait and switch' is important as it is a significant concept related to consumer protection, highlighting why it is a criticized practice in marketing!
