Chapter 3.2, Problem 3R

To determine

To Discuss: The characteristics of Competitive, Informative and Bait and Switch Advertising.

Explanation of Solution

Key characteristics of Competitive, Informative and Bait and Switch Advertising:

Advertisement	Characteristics
Competitive Advertising	Cost, product/service differentiation
Informative Advertising	To develop demand for goods and services, focuses on accuracy
Bait and Switch Advertising	Advertises prices which are exceptionally low in order to gain customers

Economics Concept Introduction

Introduction:

Competitive Advertising is used by companies in order to differentiate from other competitors. Its points out features of a brand which may not be available in other brands but does not directly name a competitor.

Informative Advertising means advertising carried out in an informative manner by giving information about the suitability and quality of a product. The main purpose of this advertisement is to give information that tends to help and generate good reputation.

Bait and Switch refers to false or dishonest sales in which a business advertises a bargain price for an item in order to attract customers into the stores and tells the prospective buyers that the particular item is of poor quality and attempts to switch the customer to a higher or expensive product.