Bait and Switch

    graph LR
	A[Customer Sees Ad] --> B{Validate Claim?}
	B -->|Yes| C[Customer Enters Store]
	B -->|No| D[Customer Leaves]
	C --> E{Item Available?}
	E -->|Yes| F[Purchase Made]
	E -->|No| G[Upsell Attempt]
	G --> H[Customer Decides]
	H -->|Buys| J[More Expensive Item Sold]
	H -->|Leaves| K[Lost Sale]

## What is the primary goal of a bait and switch tactic? - [x] To upsell a customer to a more expensive product - [ ] To provide the advertised item at its advertised price - [ ] To promote customer loyalty - [ ] To clear out old inventory without losses > **Explanation:** The goal is to entice customers with an attractive offer, then switch to something they’re less likely to want at a higher price. ## Why might companies use bait and switch tactics? - [x] To increase profit margins - [ ] To improve customer service - [ ] To generate more satisfied customers - [ ] To enhance brand reputation > **Explanation:** Bait and switch often leads to increased profits at the expense of ethical marketing standards. ## Which of the following is NOT a red flag for bait and switch? - [ ] Claims of "limited time offers" - [ ] Items always in stock - [x] Too-good-to-be-true prices - [ ] Complicated pricing structures > **Explanation:** "Items always in stock" is a hallmark of reliable retailers—you might be dreaming if the same item is always available at an unbeatable price! ## What should you do if a retailer engages in bait and switch tactics? - [ ] Buy the upsell to avoid conflict - [ ] Demand a refund - [x] Report them to consumer protection authorities - [ ] Spread the word to friends and family > **Explanation:** Reporting to authorities helps protect other consumers and brings accountability to dishonest business practices. ## Which of these could be considered bait and switch? - [x] Advertising a free offer that isn’t fulfilled and pushing a paid option instead - [ ] Offering a bundle of services for a fixed price - [ ] Providing a sale to clear out inventory of an old model - [ ] Discounting seasonal items to clear space for new inventory > **Explanation:** A free offer lured in customers only to push a paid option is classic bait and switch! ## What is a common defense used by companies accused of bait and switch? - [ ] We didn’t have enough inventory! - [x] It was a genuine mistake - [ ] Customers were expected to know better - [ ] The advertisement was clearly stated > **Explanation:** The "genuine mistake" defense is often trotted out, but it doesn’t wash for these deliberate tactics! ## In which industry is bait and switch most common? - [ ] Grocery Stores - [x] Retail Electronics - [ ] Food Services - [ ] Real Estate > **Explanation:** Electronic retailers often tempt consumers with unrealistically low prices for specific models that they simply don’t stock! ## What type of items are often subject to bait and switch scams? - [ x] High-end electronics - [ ] Transaction fees - [ ] Government bonds - [ ] Pre-owned cars > **Explanation:** High-end electronics tend to have considerable markups, making them prime targets for bait and switch tactics. ## What is the consequence of using bait and switch? - [ ] Increased customer satisfaction - [ ] Enhanced trust in the retail sector - [x] Erosion of consumer trust and possible legal action - [ ] A surge in repeat purchases > **Explanation:** Trust is a hard-won commodity, and bait and switch tactics severely erode it, leading to potential legal issues. ## Which of the following is a method consumers can utilize to combat bait and switch? - [ ] Go in without doing any research - [x] Check reviews and research products - [ ] Trust the salesperson explicitly - [ ] Ignore all advertisements > **Explanation:** Informing yourself before a purchase helps you recognize and dodge suspicious offers!