Cellular phone service providers often sell the phone itself at a very low price and then charge a relatively high fee for usage. This illustrates:
A) the first-mover strategy.
B) competitive cooperation.
C) the razor and blade strategy.
D) competitive positioning.
E) format licensing.

Question

Quizplus · Accepted Answer

The strategy of selling a product at a low price to increase demand for a complementary product or service that generates profits is known as the razor and blade strategy. In this case, the cellular phone is the "razor" and the usage fee is the "blade."

Cellular Phone Service Providers Often Sell the Phone Itself at a Very