How do firms that use captive-product pricing make up for the low prices of their main products?
A) They reduce the cost of the captive products.
B) They provide the captive products as freebies.
C) They set high markups on the captive products.
D) They increase the price of the main products.
E) They offer the captive products and main products together at a reasonable price.

Question

Quizplus · Accepted Answer

Captive-product pricing strategies involve selling the main product at a low price (or even at a loss) and then making up for it with high markups on the necessary captive products. These are the additional items or refills that are essential for the main product's operation, ensuring profitability for the firm.

How Do Firms That Use Captive-Product Pricing Make Up for the Low