Using Bait And Switch Advertising - 1305 Words

Edward Lazear, an economist who graduated from Stanford, defines bait and switch advertising as when a â€Å"low priced good is advertised but replaced by a different good at the showroom.† (813) In other words, what is advertised is not the final product. Rather, the advertisement is used to draw in customers who then must settle for the next best thing – according to the company, of course. Additionally, he gives a second definition of bait and switch. This definition is the conditional opposite, though it has the same central meaning: â€Å"a seller advertises he has the high-quality good at a low price but replaces it with the identical good, renamed and carrying a higher price.† (Lazear 828) Lazear also claims that bait and switch is a â€Å"profitable strategy resulting in a fully rational equilibrium with false advertising.† (813) The profitable nature of using bait and switch advertising is a direct result of consumer susceptibility. When using bai t and switch tactics, enough customers â€Å"may be induced into the showroom by advertising to make up for those lost from failing to advertise truthfully† (Lazear 818). However, that profit turns on its head when the company is caught participating in such a practice. One example of bait and switch tactics working against a company is in the case of Laptop Desktop Repair, LLC. The owner, Vadim Kruchinin, reportedly misled customers with â€Å"high-dollar offers to buy back their electronics, only to give consumers far less after they sentShow MoreRelatedEssay on Ethical Issues in Real Estate Promotion664 Words   |  3 Pagesby using ‘bait-and-switch advertising. Bait-and-Switch advertising is a dishonest sales practice in which home developers advertise a lower price for a home in order to attract home buyers and then inform the prospective home buyer that the advertised item is no longer available and attempt to sell the customer to a more expensive home. Based on my home buying experience, I found this to be a common marketing method used by home developers and real estate agents. I experienced bait-and-switchRead More Marketing Ethics Essay663 Words   |  3 Pagesissues in their everyday marketing activities. Such marketing activities that require marketing managers to utilize their moral values ethically are advertising, packaging and labeling, and global marketing.   Ã‚  Ã‚  Ã‚  Ã‚  Advertising is the most criticized of all micro-marketing activities (McCarthy 643). What is considered as unfair or deceptive advertising is very difficult to pinpoint, because times have changed and continue to change on a day to day basis. What one person may consider unfair or deceptiveRead MoreMarketing Ethics : The Moral Values That Direct Marketing Choices And Activities1612 Words   |  7 Pagesdifferent view on what is considered right or wrong. There are certain ways a company can promote their products that come across as unethical. Some of these unethical ways include: using misleading information and deception, using puffery to hype up their products, using sexual content to gain consumer’s attention, and advertising to children. For organizations hoping to enhance the image of their brand and continue to grow with clients, this sort of deceptive conduct can rapidly prompt disappointment.Read MoreFederal Trade Commission and the Act4078 Words   |  17 PagesACT 2 FALSE AND DECEPTIVE ADVERTISING 5 BAIT AND SWITCH ADVERTISING/TACTICS 8 CONSUMER FRAUD 10 IDENTIFYING, VERIFYING AND PREVENTING DECEPTION 12 CLOSING STATEMENTS ABOUT THE FEDERAL TRADE COMMISSION 13 BIBLIOGRAPHY 14 ABSTRACT The paper will serve as a historical background overview of how the Federal Trade Commission Act (FTC) came into existence. The paper will also break down the key components for which the FTC covers, such as deceptive advertising, baiting and switching andRead MoreDecisions that Determine the Success of a Business942 Words   |  4 Pagespersuade customers include using emotion, sales, peer pressure, confusion, idioms, endorsing with celebrities and common folk. According to Frisch, another type of advertising is the permissible lie. This is letting viewers decide what to think. An example they give is about fast-relief medicine. Frisch says that the customers’ fast may be different than the company’s fast. You have to watch out for using illegal techniques when advertising(38). There is also illegal advertising that you have to watchRead MoreBusiness Studies - Competition and Consumers Act1189 Words   |  5 Pagesmisled or discriminated against and also to regulat e certain trade practices that restrict competition in the market in order to sustain choice for the consumer. This influences a business’ marketing mix in which certain pricing strategies and advertising techniques can not be enforced. The Competition and Consumer Act imposes certain penalties for breaching the act, which will impact Australian businesses. Breaching the act can result in being charged for criminal or civil proceedings throughRead MoreHistory of Advertising (False Advertising)3614 Words   |  15 PagesEthics in Marketing: False Advertising History of Advertising and the Rise of Ethical Implications For decades, advertisements have been telling us not only what to buy, but also what we shouldn’t be able to live without. The history of advertising can be traced back as far as the Roman Empire, where posters advertising the gladiatorial games would be hung around for all to see. Modern advertising dates back to about 1583 when the first daily newspaper was printed in England under the reignRead MoreThe Ethics Of Electronic Advertising916 Words   |  4 PagesThe vast technological advancements within the last decades have changed how businesses approach current and potential customers. Advertising strategies have transcended traditional mediums and have evolved to infect new technology mediums. The Internet opened the doors to new possibilities and it is no different with advertising. Every new era has some new invention that calls into question its ethical standards such as the radio, television, computer, and now the Internet. Ethics concerns the moralRead MoreMar keting Mix Of My Real Estate1352 Words   |  6 Pagesour services to our clients (Futrell, 2011). Question 2 I would be honest in my advertisements and advertise my true services. Moreover, in using direct marketing, I would avoid electronic spam and understand best approaches to my potential clients. I would also avoid â€Å"bait and switch† method which is an anti-competitive practice to bait customers by advertising my services for a lower prices, and then selling at costlier prices (Couzin Grappone, 2014). Product features Friendliness, Good communicationRead MoreEthical Issues in Advertising1963 Words   |  8 PagesETHICAL ISSUES IN ADVERTISING Advertising is a paid non personal communication about an organization and its products that is transmitted to a target audience through a mass medium. It is a kind of promotional activity. Advertising is widely criticized. Advertisements often do not include much objective information for the simple reason that their primary function is not that of providing unbiased information. Exaggerated claims and outright falsehoods are the most obvious targets for complaints