Which of the following is an example of a "metering" strategy
A)A supermarket offers free parking space but charges higher for grocery
B)A television reseller spends time making sure that the picture quality of the bargain priced sets is fuzzy
C)Razors are sold at unit cost while razor blades have large profit margins
D)All of the above

Question

​Which of the following is an example of a "metering" strategy
A)​A supermarket offers free parking space but charges higher for grocery
B)A television reseller spends time making sure that the picture quality of the bargain priced sets is fuzzy
C)Razors are sold at unit cost while razor blades have large profit margins
D)​All of the above

Quizplus · Accepted Answer

Metering strategy refers to setting a low price for a product that requires a complementary product to function (in this case, the razor), while charging a higher price for the complementary product that is needed for continued use of the low-priced product (in this case, razor blades). This creates a consumer lock-in effect, where customers are more likely to continue buying the complementary product from the same company due to the initial investment they made in the low-priced product. Option A offers a bundled pricing strategy, while Option B describes a deceptive pricing strategy.

​Which of the Following Is an Example of a "Metering

Which of the Following Is an Example of a "Metering