ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Bait-and-switch advertising is a deceptive pricing technique that involves promoting a product at a surprisingly low price. However, when consumers contact a store to purchase it, they’re told that this item is no longer available.

Detailed explanation-2: -When customers attempt to buy the television at the advertised price, they are told it is out of stock and offered a more expensive unit for $999. This is likely to be bait advertising as the retailer does not have a reasonable supply of the advertised television.

Detailed explanation-3: -"Bait and switch” is a term used to describe an instance when the retailer offers for sale (switches) an advertised item for another, less expensive or desirable item that is not the same as the originally advertised item.

Detailed explanation-4: -Bait and switch selling occurs when a product is advertised at a bargain price, but is not available for sale in reasonable quantities even though the nature of the market, the nature and size of the business, and the nature of the advertisement suggest there should be available stock at a reduced price.

Detailed explanation-5: -One of the most common examples of bait and switch advertising appears in offers from car dealerships. For instance, the car dealership will typically run an ad that says they have a limited supply of a specific model of motor vehicle that they will sell at an unusually rare and low price.