What is the term for advertising a product at a low price to attract customers while intending to sell a more expensive item?

The correct term for advertising a product at a low price to attract customers with the intention of selling a more expensive item is Bait Advertising. This strategy involves enticing customers with a seemingly unbeatable offer, encouraging them to visit the store or website. Once they arrive, they are often presented with more expensive options, sometimes under the premise that the lower-priced item is out of stock or in limited availability.

Bait Advertising is a tactic commonly used to generate foot traffic or online visits, capitalizing on consumer psychology that favors deals. This approach can lead to increased sales of higher-margin products once the customer is engaged.

Loss Leader Pricing, while related, specifically refers to selling a product at a loss to draw in customers with the expectation that they will purchase additional items at regular price, not necessarily focusing on advertising a low-priced item to facilitate a different sale. Premium Pricing usually involves setting high prices to reflect quality, and Price Discrimination pertains to charging different prices to different customers for the same product, neither of which accurately describes the scenario presented.