Pricing products that must be used along with a main product, such as razor blades with a razor, is known as:
AProduct-Bundle Pricing
BTwo-Part Pricing
CBy-Product Pricing
DCaptive-Product Pricing
Explanation
* Captive-Product Pricing sets a low price for the main product and high margins on necessary companion supplies.
* Examples include ink cartridges for printers, gaming consoles and games, or razor blades and handles.
* Two-part pricing splits fees into a fixed fee plus a variable usage rate (common in services).
Exam Relevance
- Topic: Pricing Strategy
- Subtopic: Product Mix Pricing

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