Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two models share the same specifications. What type of pricing does Multiprint use?
A) product line pricing
B) captive product pricing
C) optional product pricing
D) by-product pricing
E) product bundle pricing

Question

Quizplus · Accepted Answer

Multiprint is using captive product pricing because it is maximizing profits by making it necessary for customers to buy its ink cartridges in order to use its printers. This pricing strategy is often used when a company has a dominant market position or when the product is essential for the operation of another product.

Multiprint, a Printer Manufacturing Firm, Sells Ink Cartridges for Each