Finance: What is a Bait And Switch?

What is a Bait and Switch? Bait and switch is a way of conducting sales in which the salesman tells the customer they have this low priced product that they don’t actually have and then selling them a similar but much more expensive product. It is common for bait and switch situations to manifest from sketchy advertising (prices or rates) that get the customers in then the salesman convinces them to buy something more expensive. In some situations this is illegal because it’s considered fraud.

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Transcript

00:16

cost you twenty for sixty eight a month but hey

00:18

as long as we've got your attention now would you

00:21

like to get a full year of shmoop premium for

00:23

only five hundred dollars And yeah you've just been had

00:27

that's the old bait and switch get in the door

00:30

with the promise of something amazing then once you're safely

00:33

inside pulled the rug out from under your feet and

00:35

try to up sell the crap outta and yeah you'll

00:38

see this trick being used by the guy with the

00:40

oil slick hairdo and fish tie at the used car

00:44

dealership as well as by the gal with the sweet

00:46

smile of the mortgage refinancing company She'll hook you by

00:50

telling you that she can offer you the lowest rate

00:53

on the market the money's almost free The thing is

00:56

though you've actually got a qualify for that teaser rate

00:59

And she knows that Yeah you won't But once she's

01:02

got your ear well then she'll be able teo pull

01:05

the switch After she's baited you she'll still get you

01:08

to go with her company for your mortgage only a

01:11

higher rate which translates to higher commissions for her and

01:14

bigger spread for the bank So yeah you never want

01:17

to be the fish going for the innocent looking worm

01:20

and then wind up wriggling at the end of the

01:22

hook Which is why you know many fish these days 00:01:25.238 --> [endTime] Air choosing to go vegan Oh