Saturday, 30 January 2010

Miss Fraud in a Little Black Dress

Bait and Switch
http://en.wikipedia.org/wiki/Bait_and_switch

In retail sales, a bait and switch is a form of fraud in which the party putting forth the fraud lures in customers by advertising a product or service at an unprofitably low price, then reveals to potential customers that the advertised good is not available but that a substitute is. This use of this term has extended to similar situations outside of the marketing sense.
The goal of the bait-and-switch is to convince some buyers to purchase the substitute good as a means of avoiding disappointment over not getting the bait, or as a way to recover sunk costs expended to try to obtain the bait. It suggests that the seller will not show the original product or products advertised but instead will demonstrate a more expensive product or a similar product with a higher margin. Other advertising practices, such as the use of sales techniques to steer customers away from low-profit items, depend on many of the same psychological mechanisms as a bait and switch.

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