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What is the difference between leader pricing and bait pricing?

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What is the difference between leader pricing and bait pricing? What do they have in common? How can their use effect a marketing mix? Explain your answer.

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Solution Summary

This solution explains the difference between leader and bait pricing. It outlines what the two methods have in common, and how their use can effect the marketing mix. It includes examples.

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Leader pricing is setting very low prices, usually at cost or just above to drive customers into stores.

Bait pricing is setting very low prices that are at cost or even below to attract customers and then trying to sell more expensive brands or models once the customer is in the store. This might be done by being out of stock of the advertised product, or by having contingencies on the item ("when you buy ...

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  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
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