Georgia DECA Advertising Practice Test

What sales tactic does a hotel employ when it advertises low rates but only has a few cheap rooms available?

1. Upselling

2. Bait-and-switch

3. Price reduction

4. Loss leader

The correct answer is: Bait-and-switch

The tactic being described is commonly known as bait-and-switch. This approach involves advertising an attractive deal, such as low room rates, to draw customers in, even though the advertised offer may not be fully available. In this scenario, the hotel promotes low rates but has limited availability for those specific rooms. Once customers express interest, the hotel may then attempt to sell them more expensive accommodations or services. This strategy effectively creates a sense of urgency and demand based on the appealing advertisement, which might not accurately reflect availability. Bait-and-switch is often viewed as misleading because it leads customers to believe they are getting a better deal than what is actually available, which can result in dissatisfaction if their expectations are not met. This contrasts with other tactics such as upselling, where the focus is on encouraging customers to purchase more expensive options, rather than drawing them in with a low initial price that is hard to fulfill.