Cellular phone service providers often sell the phone itself at very low prices and then charge a relatively high fee for usage.This illustrates
A) first-mover strategy.
B) competitive cooperation.
C) the razor-and-blade strategy.
D) competitive positioning.
E) format licensing.

Question

Quizplus · Accepted Answer

This illustrates the razor-and-blade strategy, where the initial product is sold at a low price, and then the company generates revenue by selling complementary products or services at a higher cost. In this case, the phone is the "razor," sold at a low price, and the usage fees are the "blade," sold at a relatively high cost.

Cellular Phone Service Providers Often Sell the Phone Itself at Very