The fact that a hot dog costs five times more at Disneyland than at Costco is an example of ________.
A)allowance pricing
B)captive-product pricing
C)penetration pricing
D)segmented pricing
E)promotional pricing

Question

Quizplus · Accepted Answer

Captive-product pricing involves offering a product (in this case, food) at a higher price when it is sold at a location where the customer is captive and has limited options, like Disneyland, compared to where the customer has more options, like Costco. This is because the customer is likely to perceive higher value at Disneyland, and therefore be willing to pay more.

The Fact That a Hot Dog Costs Five Times More