Single firms selling _____,usually price the "driver" product relatively low in order to penetrate the market and then make high margins on the follow-up business of parts,consumables or service
A) Homogenous products
B) Substitute products
C) Products used in combination
D) Undifferentiated products
E) Products that are unique

Question

Quizplus · Accepted Answer

Products used in combination usually have complementary or supplementary products that customers often purchase together. By pricing the main product (the "driver" product) relatively low, the company can attract customers and make higher margins on the additional products that are necessary or desirable to use with the main product. This strategy is commonly known as the razor-and-blades model.

Single Firms Selling _____,Usually Price the "Driver" Product Relatively Low