Pricing the basic product in a product line low while pricing related items at a higher level is called
A)premium pricing.
B)reference 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 is often used to attract customers with the lower-priced basic product and then generate additional revenue through the sale of the higher-priced related items.

Pricing the Basic Product in a Product Line Low While