The business model used by HP in selling printers and printer cartridges is the
A) profit pyramid model.
B) advertising model.
C) customer solutions model.
D) efficiency model.
E) multi-component system/installed base model.

Question

Quizplus · Accepted Answer

HP's business model for printers and printer cartridges is the multi-component system/installed base model. This model focuses on selling the initial printer hardware at a lower cost to attract customers to build up an installed base, and then generating ongoing revenue through sales of high-margin printer cartridges and other accessories. This model emphasizes the importance of customer retention and loyalty, as customers are more likely to continue purchasing cartridges for their existing printers rather than switching to a different brand.

The Business Model Used by HP in Selling Printers and Printer