Cellular phone service providers often sell the phone itself at very low prices 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

This is known as the razor and blade strategy, where a company sells a product at a low cost (the razor) to then charge more for complementary products or services (the blades). In this case, the phone itself is sold at a low price but the usage fees are relatively high.

Cellular Phone Service Providers Often Sell the Phone Itself at Very