Pricing the basic product in a product line low while pricing related items at a higher level is called
A) premium pricing.
B) bait pricing.
C) captive pricing.
D) price skimming.
E) price lining.

Question

Quizplus · Accepted Answer

Captive pricing involves setting a low price for the basic product in a product line and then charging higher prices for the accessories or related items. This strategy makes the initial product more attractive due to its lower price, but to fully utilize the product, customers must buy the higher-priced related items.

Pricing the Basic Product in a Product Line Low While