Establishing prices for razor blades that must be used with a razor blade system is known as ________ pricing.
A) by-product
B) market-penetration
C) product line
D) product bundle
E) captive-product

Question

Quizplus · Accepted Answer

Captive-product pricing involves setting prices for products that must be used with a complementary product, such as razor blades for a razor blade system. The goal is to encourage customers to purchase the complementary product by offering it at a lower price, while charging a premium for the main product (in this case, the razor blade system).

Establishing Prices for Razor Blades That Must Be Used with a Razor