Gillette uses ________ pricing when it offers razor handles at a low cost, but places a high markup on the replacement razor blades that fit in the handles.
A) optional feature
B) two-part
C) by-product
D) product line
E) captive-product

Question

Quizplus · Accepted Answer

This type of pricing strategy is called captive-product pricing, where the company sells a main product at a low cost to attract consumers, but then charges a premium price for related products that are necessary to use or maintain the main product. In this case, the razor handle is the low-cost main product, and the replacement razor blades are the related product that is sold at a higher markup.

Gillette Uses ________ Pricing When It Offers Razor Handles at a Low