________ 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) Decoy pricing
E) Keystoning

Question

Quizplus · Accepted Answer

Captive pricing is a pricing tactic in which a company sells a product (the captive product) at a price that is lower than its normal price, but requires consumers to purchase a related product (the complementary product) at a higher price. The complementary product is often a necessary accessory or consumable for the captive product. This pricing strategy is used to increase sales of the complementary product and to discourage customers from buying the captive product alone, which would result in a lower profit margin for the company.

________ Is a Pricing Tactic a Firm Uses for Two