Bait and switch advertising is a method of generating business traffic for the purpose of introducing new customers to additional products that may otherwise have gone unnoticed or have otherwise been promoted less. Some forms of bait and switch are legal whereas other forms are not. Knowing the difference between legal and illegal bit and switch advertising, in addition to realizing when to use the bait and switch selling technique and with which product, is essential to its effectiveness as an advertising tool.
Pros of bait and switch:
• Promotes customer satisfaction
Legitimate reasons for a switch include being sold out of sufficient stock, showing a customer something they might also be interested in, and replacing or upgrading a product or service. These reasons are ways to improve customer satisfaction and service because they exemplify the willingness of the business to assist the customer identify a suitable alternative. For example, if a customer sees an advertisement for a cell phone then goes into look at that phone, their intent may only be to investigate the product further because they're in the market for a new phone. Switching sales assistance to different cell phones may improve this particular customers' shopping experience and research.
• Increases market exposure
Even bait and switch advertising increases market exposure. If a bait and switch campaign is considered negative and a company quickly follows up with clearer advertising, the net affect may amount to greater advertising leverage than had a standard advertising methodology been consistently used. In other words, the advertising itself can be bait and switch, starting with one type of ad to gain customers' attention and another to build on that attention.
• Higher sales
Bait and switch advertising can boost sales forecasts and can also do so on a consistent basis if 1. The method used is legal and 2. The product and market suit the sales tactic. In other words, some markets and products work better with bait and switch advertising than others. For example, unique brands such as Coach purses may not be as easy to switch with other brands however the purses themselves may be switched provided they remain the Coach brand. The use of market research can be highly useful in determining if and when a bait and switch marketing campaign is the right choice for your business.
Cons of bait and switch:
• Constitutes false advertising
The Code of Federal Regulations defines bait advertising as meeting specific criteria. Bait and switch advertising should generally not meet these criteria in order to avoid potential negative litigation. In light of this, variations of the bait and switch that do actually intend to sell the bait product in addition to switched products are safer and more effective than a traditional bait and switch.
• Reduces brand perception
Loyal, or long-term customers with specific advertising expectations may not value bait and switch advertising at all. They may perceive it as a breach of trust and non-recognition of their value to the company as long time customers. When using the bait and switch with such customers, it may be more affective to adapt the technique to a soft-sell or more personalized approach where the bait and switch isn't quite so defined. Market research is helpful in identifying client demographics, and preferences which can be used in determining whether or not a bait and switch is the right promotional choice.
• Could lower long-term revenue
Depending on a business and its clientele, a bait and switch advertising campaign could turn out to be a complete disaster. This is evident in a Pennsylvania State University Study about the bait and switch search engine advertising. In the study, 'piggyback products' are offered or advertised alongside search results for brand specific queries with the affect of lessening the impact of the original advertisers goals and paid for advertising. This is an instance of third party advertising using bait and switch.
Pros of bait and switch:
• Promotes customer satisfaction
Legitimate reasons for a switch include being sold out of sufficient stock, showing a customer something they might also be interested in, and replacing or upgrading a product or service. These reasons are ways to improve customer satisfaction and service because they exemplify the willingness of the business to assist the customer identify a suitable alternative. For example, if a customer sees an advertisement for a cell phone then goes into look at that phone, their intent may only be to investigate the product further because they're in the market for a new phone. Switching sales assistance to different cell phones may improve this particular customers' shopping experience and research.
• Increases market exposure
Even bait and switch advertising increases market exposure. If a bait and switch campaign is considered negative and a company quickly follows up with clearer advertising, the net affect may amount to greater advertising leverage than had a standard advertising methodology been consistently used. In other words, the advertising itself can be bait and switch, starting with one type of ad to gain customers' attention and another to build on that attention.
• Higher sales
Bait and switch advertising can boost sales forecasts and can also do so on a consistent basis if 1. The method used is legal and 2. The product and market suit the sales tactic. In other words, some markets and products work better with bait and switch advertising than others. For example, unique brands such as Coach purses may not be as easy to switch with other brands however the purses themselves may be switched provided they remain the Coach brand. The use of market research can be highly useful in determining if and when a bait and switch marketing campaign is the right choice for your business.
Cons of bait and switch:
• Constitutes false advertising
The Code of Federal Regulations defines bait advertising as meeting specific criteria. Bait and switch advertising should generally not meet these criteria in order to avoid potential negative litigation. In light of this, variations of the bait and switch that do actually intend to sell the bait product in addition to switched products are safer and more effective than a traditional bait and switch.
• Reduces brand perception
Loyal, or long-term customers with specific advertising expectations may not value bait and switch advertising at all. They may perceive it as a breach of trust and non-recognition of their value to the company as long time customers. When using the bait and switch with such customers, it may be more affective to adapt the technique to a soft-sell or more personalized approach where the bait and switch isn't quite so defined. Market research is helpful in identifying client demographics, and preferences which can be used in determining whether or not a bait and switch is the right promotional choice.
• Could lower long-term revenue
Depending on a business and its clientele, a bait and switch advertising campaign could turn out to be a complete disaster. This is evident in a Pennsylvania State University Study about the bait and switch search engine advertising. In the study, 'piggyback products' are offered or advertised alongside search results for brand specific queries with the affect of lessening the impact of the original advertisers goals and paid for advertising. This is an instance of third party advertising using bait and switch.
Sources:
1. http://bit.ly/aUTmKb (Federal Trade Commission)
2. http://bit.ly/19FIs0 (County of Los Angeles)
3. http://bit.ly/b64fVc (Law Brain)
4. http://bit.ly/8YiZLb (Edmunds)
5. http://bit.ly/aOO92Q (Pennsylvania State University)
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