Krista goes to a store to buy a new liquid soap dispenser. When she purchases a new dispenser from the store she gets two liquid soap refill packets for free, as part of a promotional offer, but she will need to purchase refills later. In this scenario, the pricing strategy used for the soap dispenser is ________ pricing.
A) product line
B) captive
C) variable
D) reference
E) prestige

Question

Quizplus · Accepted Answer

Captive pricing is when a company sells a product at a lower price to attract customers but then they have to purchase associated products or services at a higher price in the future. In this case, the store is offering the soap dispenser at a regular price but including free refills, which will encourage Krista to purchase refills from the same store later.

Krista Goes to a Store to Buy a New Liquid