Which of the following companies uses captive product pricing?
A) Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries
B) Tune Zone, which launched a range of mp3 player models, each priced according to its features
C) Penguin's Parlor, which offers customers a 20-percent discount on their birthdays
D) Sportsprint, which prices sports equipment according to customer evaluations
E) Burger Den, whose combo meals are priced lower than its individual components sold together

Question

Quizplus · Accepted Answer

Captive product pricing is a strategy where a company sells a product at a lower price but forces customers to buy a complementary product at a higher price. In this case, Photo Genie sells inexpensive cameras but only allows them to be used with their own expensive batteries, thereby forcing customers to buy both products together.

Which of the Following Companies Uses Captive Product Pricing