When Polaroid set the general price range of its cameras low and the markup on its film high,it was practicing .
A)captive product pricing
B)product line pricing
C)market- skimming pricing
D)market- penetration pricing
E)price bundling

Question

Quizplus · Accepted Answer

Captive product pricing is a strategy where the company sets a low price for the main product and charges a higher price for associated items that the consumer needs to continue using the main product. In this case, Polaroid set a low price for their cameras, making them easily accessible to consumers, but charged a higher markup for the film needed to use the camera, thus following captive product pricing strategy.

When Polaroid Set the General Price Range of Its Cameras