Lexmark sells some of its color printers for about $100, but the refill cartridges cost over $30 each. Lexmark's pricing strategy would be best labeled as
A) odd-number pricing.
B) captive pricing.
C) customary pricing.
D) price lining.
E) complementary pricing.

Question

Quizplus · Accepted Answer

Lexmark's pricing strategy can be considered as captive pricing because the company is selling its printers at a low price, but the refills are priced high. This means that consumers are captive to buying the refill cartridges from Lexmark because they have already invested in the printer and switching to a different brand would be expensive.

Lexmark Sells Some of Its Color Printers for About $100