Which pricing strategy involves advertising a product at a low price and then changing it?

The chosen answer involves a strategy commonly referred to as bait-and-switch. This tactic involves attracting customers with the advertisement of a product at an enticingly low price, only to later switch the price or the product itself once the customer shows interest. It capitalizes on the initial attraction created by the low price, with the expectation that customers will either settle for a more expensive alternative or remain engaged with the brand.

In understanding why this approach is effective within the realm of marketing, it's important to recognize the psychological impact of perceived savings. Consumers are drawn in by the low price point, which creates a sense of urgency or excitement. Once they are engaged, they may be more likely to purchase a higher-priced alternative, either due to persuasive selling techniques or simply because they have already invested time and energy into the shopping process.

Loss leader pricing, on the other hand, is a legitimate strategy where a product is sold at a loss to attract customers, with the idea that they will buy additional, more profitable items. Price skimming involves setting a high initial price and lowering it over time, usually for technology products, while dynamic pricing adjusts prices based on current market demand rather than a bait-and-switch tactic. Thus, while there may be overlaps in customer attraction strategies,