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

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