1 page/≈275 words
Business & Marketing
Leader pricing vs. Bait pricing
What is the difference between leader pricing and bait pricing? What do they have in common? How can their use affect a marketing mix? Explain your answer. Your response should be at least 300 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. **if possible use source from Essentials of Marketing 12th Edition McGraw Hill **
Pricing as a mean of marketing plays a major role in determining the sales of a product in the market and there are several pricing approaches that are used to convince a customer to purchase a product ( HYPERLINK "/search?tbo=p&tbm=bks&q=inauthor:%22Jr.+Perreault,+William%22&source=gbs_metadata_r&cad=5" William, HYPERLINK "/search?tbo=p&tbm=bks&q=inauthor:%22Joseph+Cannon%22&source=gbs_metadata_r&cad=5" Cannon & HYPERLINK "/search?tbo=p&tbm=bks&q=inauthor:%22E.+Jerome+McCarthy%22&source=gbs_metadata_r&cad=5" McCarthy, 2009). Am going to consider the leading and bait pricing approaches and explain the difference between them as well as the similarity of the two approaches. Leader pricing approach is the mechanism whereby the price of a high demand product is reduced in order to appeal people to come into a retail shop and may be inspired to buy additional products. On the other hand, bait pricing is an approach whereby a product is advertised at an extremely low price. The intent of this approach is to attract a customer with the aim of selling them a more profitable product of a higher quality.
It is clear from the above definition of the two approaches that the major difference from the two approach is that in leaders pricing approach the intention is to sell a quality item hoping the customer will make more purchases while in the store whereas the bait pricing approach is s...
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