Hunting bows are often priced low,and retailers of archery equipment make their profit on higher-margin high-priced arrows.This is an example of ________.

Question

Quizplus · Accepted Answer

This is an example of captive pricing, where the retailer prices the primary item (i.e., the hunting bow) lower in order to capture the sale, and makes a profit on the complementary items (i.e., arrows) sold at a higher margin.

Hunting Bows Are Often Priced Low,and Retailers of Archery Equipment