A Culligan faucet filter sells for $18, while other replacement filters (that avoid warranty) sell for $12. What strategy is Culligan using?
A) tying
B) loss leader
C) vertical integration
D) marginal-replacement pricing

Question

Quizplus · Accepted Answer

Culligan is using tying, where they are bundling their product (the faucet filter) with a requirement to use their replacement filters in order to maintain the product's warranty. This can limit consumer choice and lead to more sales of the higher-priced replacement filters.

A Culligan Faucet Filter Sells for $18, While Other Replacement