2025 NES Business Studies Practice Test – Complete Exam Prep

The scenario that illustrates bait and switch advertising involves advertising one product at a low price to attract customers, but then steering them toward a more expensive option. In this case, the camera store draws potential buyers in by promoting a low-priced digital camera, which creates an initial interest and expectation based on the advertised price. However, when customers arrive, they are directed to a more costly camera instead, which is a clear case of bait and switch.

This practice is misleading because it lures consumers with an attractive offer that the business does not intend to fulfill, thus failing to provide the advertised item and instead substituting it with something else, often resulting in higher sales for the store. This type of advertising is generally considered unethical and is often regulated by consumer protection laws.

The other scenarios, while problematic in their own ways, do not meet the specific criteria of bait and switch advertising as clearly. For example, a car dealership's offer on a specific model not being available does not involve redirecting customers to a different product; similarly, the clothing store's sale on winter coats indicates a lack of inventory but does not try to sell customers different items deliberately. The electronics retailer's claim about a display model could imply misleading advertising but lacks the direct intent to