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What strategy involves selling a main product at a low margin while making high profit margins on required replacement supplies?

ABy-Product Pricing
BProduct Line Pricing
CTwo-Part Pricing
DCaptive-Product Pricing

Explanation

* Captive-Product Pricing pairs a low-priced core product with expensive recurring consumables (e.g., printers and ink cartridges).
* Main unit price attracts buyers, while recurring supply purchases generate long-term profitability.
* Pricing balance is critical to prevent third-party consumable entry.

Exam Relevance
  • Topic: Pricing Strategy
  • Subtopic: Product Mix Pricing
Submitted by: mcqstutor Team More Marketing MCQs →

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