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Bait-and-switch constitutes a deceptive commercial practice wherein a merchant advertises a product at an attractively low price with the sole intent of drawing in potential customers, subsequently aiming to persuade them to purchase a different, typically more expensive, substitute product.
Answer: True
This statement accurately defines the core mechanism of the bait-and-switch tactic, emphasizing the deceptive intent behind the initial advertisement.
The principal objective of a merchant employing the bait-and-switch tactic is to sell the advertised low-price item, even if stock is limited.
Answer: False
The primary objective is not to sell the advertised item, but rather to use it as a lure to sell a different, often more profitable, substitute product.
In the 'switch' phase of bait-and-switch, the substitute product offered is typically of higher quality but the same price as the advertised item.
Answer: False
The substitute product is typically of higher price or lower quality than the advertised item, not necessarily higher quality at the same price.
The bait-and-switch tactic primarily relies on the customer's lack of knowledge about product pricing.
Answer: False
While pricing is a factor, the tactic more significantly exploits the customer's investment of time and effort (sunk cost fallacy) and their desire to avoid leaving without a purchase.
Consumers often accept a substitute product in a bait-and-switch scenario to feel they have partially recovered their initial investment of time and effort.
Answer: True
This reflects the psychological principle of the sunk cost fallacy, where individuals are more inclined to proceed with a course of action if they feel they have already invested significantly in it.
The core deception in bait-and-switch lies in the seller's genuine surprise when the advertised item sells out quickly.
Answer: False
The deception lies in the seller's pre-meditated intent not to sell the advertised item, using it solely as a lure, not in genuine surprise at its sell-out.
What is the fundamental definition of the bait-and-switch tactic?
Answer: The practice of attracting customers with an advertised low price for an item the seller does not intend to sell, subsequently pressuring them to purchase a more expensive substitute.
This definition encapsulates the core elements: the deceptive lure (bait) and the subsequent pressure to purchase an alternative (switch).
What is the primary objective of the 'bait' component within a bait-and-switch tactic?
Answer: To attract customers into the store or onto the platform.
The 'bait' serves as an initial enticement designed solely to draw potential customers into the sales environment, where the 'switch' can then be attempted.
What psychological principle does the bait-and-switch tactic exploit in consumers?
Answer: The sunk cost fallacy, stemming from the consumer's investment of time and effort.
The tactic leverages the sunk cost fallacy by making consumers reluctant to abandon their pursuit of a product after investing time and effort, even if it means accepting a less desirable substitute.
What is the core deceptive element of the bait-and-switch tactic?
Answer: The merchant's intent not to sell the advertised product, using it only as a lure.
The fundamental deception lies in the merchant's pre-existing intention to withhold the advertised product, employing it solely as a means to attract customers for a different transaction.
What is the definition of a 'loss-leading item'?
Answer: A product sold at a very low price, potentially at a loss, to attract customers into a store.
A loss-leading item is strategically priced low, often below cost, to draw customers in, with the expectation that they will purchase other, more profitable items.
Bait-and-switch techniques are a recent invention, emerging with the rise of online commerce.
Answer: False
Historical documentation, such as Zhang Yingyu's *The Book of Swindles* (c. 1617), indicates that variations of this tactic have existed for centuries, predating online commerce.
Zhang Yingyu's *The Book of Swindles* (c. 1617) is significant because it documents early instances of the bait-and-switch tactic.
Answer: True
This historical text provides evidence of deceptive sales practices, including precursors to the modern bait-and-switch, dating back to the early 17th century.
According to the provided source material, how far back does the historical documentation of bait-and-switch techniques potentially extend?
Answer: Approximately 1617, as documented in Zhang Yingyu's *The Book of Swindles*.
Historical texts, such as Zhang Yingyu's *The Book of Swindles*, indicate that variations of this deceptive practice existed as early as the 17th century.
In the United States, victims of bait-and-switch can only report the incident to consumer protection agencies, as lawsuits are not permitted.
Answer: False
Victims and competitors can pursue legal action, including lawsuits for false advertising and trademark infringement, in addition to reporting to agencies.
A seller in the US is automatically liable for bait-and-switch if they promote a different product, even if the advertised item is genuinely available for sale.
Answer: False
Liability hinges on the intent not to sell the advertised item. If the advertised product is genuinely available and can be sold, the seller may avoid liability, even if they also promote alternatives.
Advertising a sale item with intentionally limited stock is illegal in the US if it leads to a quick sell-out.
Answer: False
Advertising limited stock is legal in the US, provided it is disclosed and reasonable measures are taken, such as offering rain checks.
To legally advertise limited stock in the US, a seller must always offer a rain check to customers.
Answer: False
While offering a rain check is a legal measure, clearly stating 'limited quantities' in the advertisement is also a sufficient method to avoid illegal bait-and-switch practices.
In the United States, what legal recourse is available to competing businesses against entities engaging in bait-and-switch operations?
Answer: Sue for trademark infringement.
Competing businesses harmed by bait-and-switch tactics can pursue legal action, notably through lawsuits for trademark infringement.
Under what specific condition might a seller in the United States avoid liability for bait-and-switch, even when actively promoting a competing product?
Answer: If the seller can genuinely sell the advertised product, regardless of promotion efforts.
The crucial factor for avoiding liability in the US is the genuine availability and willingness to sell the advertised product, even if other items are also promoted.
Which of the following represents a legal method for a US seller to advertise a sale item with limited stock?
Answer: By clearly stating 'limited quantities' in the advertisement.
Clearly disclosing limited quantities in advertisements is a legal means to manage expectations and avoid accusations of bait-and-switch when stock is restricted.
Bait-and-switch practices are permitted under the Consumer Protection from Unfair Trading Regulations 2008 in England and Wales.
Answer: False
These regulations explicitly prohibit bait-and-switch practices in England and Wales, classifying them as unfair commercial practices.
Violating the Consumer Protection from Unfair Trading Regulations 2008 in England and Wales can result in criminal prosecution and imprisonment.
Answer: True
Infringements of these regulations can indeed lead to criminal prosecution, carrying penalties that include significant fines and potential jail time.
Bait-and-switch is considered a legal and acceptable marketing practice in Canada.
Answer: False
Bait-and-switch is explicitly illegal in Canada under the Competition Act.
In Australia, bait advertising is permitted under the Competition and Consumer Act 2010 as long as the seller eventually offers a substitute product.
Answer: False
Bait advertising is illegal under the Competition and Consumer Act 2010 in Australia; the offering of a substitute product does not legitimize the practice.
What specific legislation prohibits bait-and-switch practices in England and Wales?
Answer: The Consumer Protection from Unfair Trading Regulations 2008
These regulations are the primary legal instrument prohibiting unfair commercial practices, including bait-and-switch, in England and Wales.
What are the potential criminal penalties associated with violating bait-and-switch regulations in England and Wales?
Answer: An unlimited fine and up to two years in jail.
Violations of the Consumer Protection from Unfair Trading Regulations 2008 can result in severe criminal penalties, including substantial fines and imprisonment.
Is the practice of bait-and-switch considered legal in Canada?
Answer: No, it is illegal under the Competition Act.
The Competition Act in Canada explicitly prohibits the practice of bait-and-switch selling.
Which Australian legislation specifically addresses the illegality of bait advertising?
Answer: The Competition and Consumer Act 2010
The Competition and Consumer Act 2010 is the primary legislation in Australia that prohibits bait advertising.
What is the primary legal concern regarding bait advertising in Australia, as stipulated by the Competition and Consumer Act 2010?
Answer: That businesses might not supply advertised products in reasonable quantities, misleading consumers.
The Act prohibits bait advertising because it misleads consumers by advertising products that businesses do not intend to supply in reasonable quantities.
Car dealerships commonly use bait-and-switch by advertising vehicles with high prices and then offering discounts later.
Answer: False
Dealerships typically advertise vehicles at attractive prices, then claim unavailability and pressure customers into purchasing different, often more expensive, vehicles, rather than offering discounts on advertised high-priced items.
Online sellers practicing bait-and-switch might ship a cheaper imitation of the advertised product or even just a picture.
Answer: True
This represents a common deceptive practice in online commerce, where the advertised product is misrepresented or substituted with inferior goods or mere representations.
A bait-and-switch job offer occurs when the advertised role's responsibilities are significantly less demanding than the actual job.
Answer: False
A bait-and-switch job offer typically involves the actual responsibilities being *more* demanding or significantly different than advertised, not less.
Using a 'caption bill' with minor proposed changes that are later replaced with major amendments is an example of bait-and-switch in lawmaking.
Answer: True
This legislative tactic mirrors the bait-and-switch structure by initially presenting a benign proposal to gain acceptance, then substituting it with a significantly different one.
Rickrolling, where a link leads to Rick Astley's music video instead of the expected content, is an example of bait-and-switch in humor.
Answer: True
This practice exemplifies bait-and-switch by setting up an expectation (the link's content) and delivering something entirely different and unexpected (the music video).
How do car dealerships typically implement bait-and-switch tactics?
Answer: By advertising vehicles at attractive prices, then claiming unavailability and pressuring customers to buy different vehicles.
This method involves using an appealing advertised price as bait, then substituting the offer when the customer arrives, often leading to the sale of a different vehicle.
What is a common deceptive practice employed by online sellers within bait-and-switch schemes?
Answer: Shipping a cheaper imitation or only a picture of the advertised item.
Online sellers may use bait-and-switch by displaying an attractive product image but delivering a substandard replica or merely a photograph, deceiving the customer.
What defines a bait-and-switch scenario within the context of job offers?
Answer: The advertised job duties and responsibilities are significantly different from the actual role.
A bait-and-switch job offer occurs when the reality of the position deviates substantially from its initial description, typically involving more demanding or different duties.
How can the legislative process employ a bait-and-switch tactic?
Answer: By proposing minor rule changes to meet notice requirements, then substituting major ones at the final vote.
This tactic involves presenting minor changes to satisfy procedural requirements, then introducing significant, potentially controversial, amendments at a later stage.
Rickrolling is presented as an example of bait-and-switch within which specific context?
Answer: Humor and online culture
Rickrolling is cited as an instance of bait-and-switch applied humorously in online environments, where expectations are deliberately subverted.
Beyond retail commerce, in what other domains can bait-and-switch tactics be applied, according to the source material?
Answer: Primarily in political campaigns and job offers.
The source indicates that bait-and-switch tactics extend beyond retail, appearing in contexts such as political campaigns and job recruitment.
The marketing concept AIDA is synonymous with the bait-and-switch tactic.
Answer: False
AIDA (Attention, Interest, Desire, Action) is a marketing model; bait-and-switch is a deceptive tactic that may exploit the initial phases of AIDA but is not synonymous with it.
Choice architecture is unrelated to bait-and-switch tactics, as it focuses on ethical consumer guidance.
Answer: False
Bait-and-switch tactics often exploit choice architecture by manipulating the presentation of options to steer consumers toward a particular, often deceptive, outcome.
Clickbait differs from bait-and-switch because clickbait headlines are always accurate representations of the content.
Answer: False
Clickbait headlines are often intentionally sensational or misleading, failing to accurately represent the content, which is a key similarity to the deceptive nature of bait-and-switch.
The 'door-in-the-face' technique involves making a small request first, followed by a larger one, similar to bait-and-switch.
Answer: False
The 'door-in-the-face' technique involves a large request followed by a smaller one, relying on reciprocity. Bait-and-switch involves an unavailable initial offer and pressure to accept an alternative.
The foot-in-the-door technique is a persuasion strategy where a large request is made first to increase the likelihood of agreement to a subsequent smaller request.
Answer: False
The foot-in-the-door technique involves a small initial request followed by a larger one, whereas the 'door-in-the-face' technique follows the pattern described in the question.
The low-ball tactic is identical to bait-and-switch, involving the substitution of a completely different product.
Answer: False
Low-balling typically involves changing the terms or revealing hidden costs of the *same* deal, whereas bait-and-switch substitutes a *different* product.
Upselling is a sales technique that is always a result of a bait-and-switch tactic.
Answer: False
Upselling can occur as part of the 'switch' in bait-and-switch, but it is also a legitimate sales technique used independently of deceptive practices.
In confidence tricks, 'the switch' refers to the seller substituting a genuine item for a counterfeit or inferior one during a transaction.
Answer: True
This describes a common method within confidence tricks where the actual exchange involves a fraudulent substitution.
A 'Trojan horse' strategy in business involves advertising a product that is unavailable to lure customers.
Answer: False
A Trojan horse strategy involves introducing something seemingly acceptable with a hidden detrimental purpose, differing from bait-and-switch's focus on an unavailable lure.
The 'Attention' and 'Interest' phases of the AIDA marketing model are comparable to which component of the bait-and-switch tactic?
Answer: The 'bait' used to attract customers.
The initial stages of AIDA (Attention, Interest) align with the function of the 'bait,' which is designed to capture the consumer's focus and interest.
How does the bait-and-switch tactic relate to the concept of 'choice architecture'?
Answer: It exploits choice architecture by manipulating the presentation of options to influence decisions.
Bait-and-switch tactics leverage choice architecture by structuring the decision-making environment to steer consumers toward a predetermined, often deceptive, outcome.
What is the primary similarity between clickbait and the bait-and-switch tactic?
Answer: Both use sensational headlines to attract attention but may not deliver on the promise.
Both clickbait and bait-and-switch employ an enticing lure (headline or advertised product) designed to attract attention, often failing to deliver the expected content or product.
How does the 'door-in-the-face' technique differ from the bait-and-switch tactic?
Answer: Bait-and-switch uses deception about product availability, while door-in-the-face relies on reciprocity after making a large request.
The fundamental difference lies in the mechanism: bait-and-switch relies on the unavailability of the initial lure, whereas door-in-the-face leverages psychological reciprocity after a large, rejected request.
The foot-in-the-door technique involves:
Answer: Getting agreement to a small request first to increase compliance with a later, larger request.
This technique relies on the principle of commitment and consistency, where initial agreement to a minor request increases the likelihood of agreeing to a subsequent, larger one.
What is the key difference between the low-ball tactic and the bait-and-switch tactic?
Answer: Low-balling changes the terms or reveals hidden costs of the *same* deal, while bait-and-switch substitutes a *different* product.
The core distinction lies in the nature of the deception: low-balling alters the terms of the original agreement, whereas bait-and-switch involves replacing the advertised product entirely.
How can the sales technique of upselling be related to bait-and-switch tactics?
Answer: The 'switch' in bait-and-switch often involves persuading the customer to buy a more expensive item, which is a form of upselling.
The act of persuading a customer to purchase a more expensive substitute during the 'switch' phase is fundamentally an instance of upselling, albeit achieved through deceptive means.
What does 'the switch' (as employed in confidence tricks) typically involve?
Answer: Substituting a genuine item with a counterfeit or inferior one.
In confidence tricks, 'the switch' commonly refers to the fraudulent substitution of a valuable item with a worthless or inferior one.
How does a 'Trojan horse' strategy differ from the bait-and-switch tactic?
Answer: Bait-and-switch uses a lure that is intentionally unavailable; Trojan horse introduces something seemingly acceptable with a hidden detrimental purpose.
The key difference lies in the nature of the deception: bait-and-switch relies on the unavailability of the advertised lure, while a Trojan horse involves hidden malicious intent within an accepted entity.
Which of the following concepts is NOT listed as related to bait-and-switch in the provided 'See also' section?
Answer: Direct mail marketing
While clickbait, pyramid schemes, and cross-selling are listed as related concepts, direct mail marketing is not explicitly mentioned in the provided 'See also' section.