The razor-and-razor-blade revenue model:
A)includes and tangible and intangible sales
B)includes the sale of a low-cost physical product to encourage the sale of more expensive products
C)includes a high-cost product with easy-to-replace parts
D)includes additional products as an add-on to the sale

Question

Quizplus · Accepted Answer

The razor-and-razor-blade revenue model refers to a marketing strategy where a low-cost physical product (razor) is sold to encourage the purchase of more expensive products (razor blades). This model is often used in industries where there is a high degree of product differentiation and the cost of switching between products is low.

The Razor-And-Razor-Blade Revenue Model