________ is a pricing tactic a firm uses for two products that work only when used together.The firm sells one item at a very low price and then makes its profit on the second high-margin item.
A)Two-part pricing
B)Price bundling
C)Captive pricing
D)Penetration pricing
E)Skim pricing

Question

Quizplus · Accepted Answer

Captive pricing is a pricing tactic where a company sells a product at a lower price, called the "captive," to attract customers to buy a complementary, higher-priced product needed to use the captive product. The idea behind captive pricing is that customers are locked into buying the second product once they have purchased the first. For example, razors and razor blades are usually sold together using captive pricing. The razor handle is sold at a low price, while the razor blades are sold at a higher price, making up for the low-profit margin of the handle.

________ Is a Pricing Tactic a Firm Uses for Two