The item in stock or 3 refusing to take orders for

Info icon This preview shows pages 56–57. Sign up to view the full content.

the item in stock or (3) refusing to take orders for the item. In the question the store offers a product at a low price is out of stock on the product, the salesperson tells you that the sale item was of inferior quality and attempts to get you to buy a higher-priced model. Page: 396-397, figure 14-9 Learning Objective: 4 190. A radio ad warned customers to "not fall prey to bait-and-switch schemes". The ad was telling potential customers to __________. a) report services that violate the anti-competition regulations. b) be wary of brake repair services that are priced low because the services may try to sell customers a much higher priced service once the customer enters the store c) avoid doing businesses with services that have initiated a conspiracy among firms in its industry to set prices for a product or service d) not do business at services that have arranged with a particular manufacturer that they will only buy from this manufacturer and from no other e) Avoid doing business with monopolistic competitors who are trying to start a price war Ans: b Feedback: Bait and switch is a deceptive practice whereby a firm offers a very low price on a product (the bait) to attract customers to a store. Once in the store, the customer is persuaded to purchase a higher-priced item (the switch) using a variety of tricks, including (1) downgrading the promoted item, (2) not having the item in stock or (3) refusing to take orders for the item. Page: 396-398, figure 14-9 Learning Objective: 4
Image of page 56

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 57
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern