Typically,producers who use captive- product pricing set the price of the main product and set on the supplies necessary to use the product.
A)high;high markups
B)low;high markups
C)low;low markups
D)moderately;moderate markups
E)high;low markups

Question

Quizplus · Accepted Answer

Captive-product pricing involves setting a low price for the main product in order to attract customers, but charging high markups on the supplies necessary to use the product. This encourages customers to continue purchasing from the same producer for convenience, despite the higher cost of supplies. Therefore, option B - low main product price with high markups on supplies - is the best choice.

Typically,producers Who Use Captive- Product Pricing Set the Price of the Main