Do You Agree with Bait and Switch Marketing

[Alston]

Promoting one product and selling another isn't necessarily bait and switch. If the product promoted is available and adequate and only an ethical amount of sales pressure us used to up sell, there is nothing wrong in my opinion.

Ethical insurance agents will sell life insurance to both husband and wife when the sales call was ostensibly about selling the breadwinner a policy.

I think that there are cases where you can ethically up sell and other cases where it is bait and switch.

 

[Slim]

Up-selling is not bait and switch either I don't think.

In retail , bait and switch is illegal although seldom enforced.

If my memory is half alive I believe in Insurance , the Companies I contract with (and my original licensing process) indicated to me the practice is unethical if not illegal and will be grounds for disciplinary action up to and including loss of license and/or contract and commissions.

The agents who will do or say anything for the sale have always been ones I avoid.

 

[Alston]

The scenario described at the beginning of the thread isn't bait and switch. It may be unethical, but the term is used incorrectly.

Bait and switch is when you pay for item A and item B is delivered. What was described above is aggressive and potentially unethical up selling because the switch is made before the sale is consummated.

 

[xrac]

It does not bother me. Life insurance has to be sold and often requires that the agent educate the client. You have to be able to get in front of the client to educate them and to help them. If you publish all the disclaimers you will either bore people or scare them off and you will never get to talk to them. It is kind of like fishing. What is offered the fish looks really good but in reality the fish can't eat the wood, plastic, steel, and paint. It is a bait and the cheap term is bait. For the fish the bait always spells bad news because he is caught but for the client the offer of the cheap term is also bait but it can lead to good results if it prompts him to look at protecting his family. The client who is 50 years old, 300 pounds, and has HBP has to be educated as to what will work for him and what will meet his need. If you cannot get in front of him you never have the chance to help him.

 

[Slim]

Don't make me get a dictionary . Comfy in my easy chair as I am .

I was taught long long ago , it is illegal to do bait and switch advertising.

There is something called consumer protection I believe.

Bait and switch example is : a hard-ware store with a sign on the window clearly stating "Patti's Collectible Porcelain Doll limited edition $10.00 while supplies last" . Then you rush in to get it for your daughter, grandaughter , neice or self and the store clerk looks at you dumbfoundedly when you get to the register w/ doll in hand , and you expecting the price to match the sign at the register even though the box shows regular price, the clerk rings up $26 says oh no we forgot to take that sign down . Or clerk says the sign says until Wednesday. But you check it and the sign has no time limit it only has supply limit. So the clerk and the manager says you have to pay $26 if you want "Patti's Collectible Porcelain Doll".

I believe if you make me break out a law book I will find that that is bait and switch.

Or if going down I-40 in AR you see a billboard and it says gas unleaded $1.65/gallon and you go ahead and drop in at the po-dunk town with 2 gas stations and one owner of the whole town and the clerk says "oh the gas pump has the correct price. Oh the billboard it is 25 miles away and billy-bob's truck is broke down and he can't make it to change the sign . Sir the gas price is $1.99 per gallon . The billboard hasn't been changed in a week and it is not going to be and you are not going to get gas here for any less. "

False advertising and bait and switch . Where you find one you find the other.

Put something in the mail like that and start selling it and you may find out what fraud is all about .

 

[hlink20]

A lot of agents are using what I call "Bait and Switch Marketing". Example is they mail a prospect a mailer that shows the best rates on a 10 year term with the best rate class. Just trying to get the client to call them. Most of the time, they either have small print on it or do tell them what the products really is. We all have seen the tv ads that show where a 40 male can get $500,000 for 15 a month, but you can't see the small print on these ads.

When you contact the agent or whomever did the ad, they try and switch products on you. Well you don't really want a 10 year term, now do you? Also that price was for the best rate class and you have a few health problems.

Just reminds me of a car lot ad. They show this really nice car with a great price and when you show up, they have already sold that car, but while you are here, why not look around.


Does this type of marketing really work? I mean I guess it does if they keep doing it.

What are your thoughts about this type of marketing?

This type of marketing does occur. If the intent is to switch them from the beginning, then this is really an ethics issue. However, if the client asks for additional options outside of the original offer, then you are doing your job as their broker to assist them with options. I agree with you... It does not serve the broker nor the industry well if we disregard our ethics or morals just to make a sale. Good luck.

 

[joeblow]

Agreed. I see that crap all the time and it hacks me off. People seem to fall for it, though.

I figure anybody who's simply looking for the cheapest [whatever] regardless of their situation is not my target client anyhow.

 

[Mark]

Most of the mailers that I see where they place quotes on the advertising, always shows a 10 year term with the best class and a lot of small print or not print at the bottom.

Age 40 Male 1,000,000 for 9 a month *

* only available in 2 states. * This price is for someone else, not you. * I hope you cant read this small print

That price is meant for someone else and you really don't want that product anyways. LOL