Distinguish between leader pricing and bait pricing.  

Asked on by luigi450

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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These are two very different things.

Leader pricing is the practice of offering legitimate sale prices on popular items to get people to come into a store.  It is typically used to get people to patronize one establishment rather than others.  It is also used to get people into a store where they might also buy other items that are not on sale and have higher profit margins.

Bait pricing, by contrast, is deceptive.  The store advertises a really good deal on something but is typically not really offering that deal.  Instead, when a person comes in to try to take advantage of the deal, the staff uses high pressure techniques to try to get the customer to buy something that is not a good deal at all.

In this way, leader pricing is a legitimate use of low prices while bait pricing is deceptive.

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