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Pricing products that must be used along with a main product, such as razor blades for a razor handle or ink cartridges for a printer, is known as:

ABy-Product Pricing
BOptional-Product Pricing
CProduct Bundle Pricing
DCaptive-Product Pricing

Explanation

* Captive-Product Pricing sets a low price on the primary durable hardware while applying high profit markups on required supply accessories.
* By-product pricing sells waste/byproducts; Bundle pricing combines products; Optional pricing prices extra add-on accessories.
* This model is widely known in business strategy as the ‘razor-and-blades’ revenue model.

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

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