Setting the price for an item relatively low and then charging much higher prices for the expendables it uses is called ________.
A) price lining
B) premium pricing
C) price skimming
D) captive pricing

Question

Quizplus · Accepted Answer

Captive pricing refers to setting a low price for the main product and charging higher prices for the complementary products or accessories required to use or maintain the main product. This strategy is commonly used in the printer industry, where printers are sold at a low price, but the replacement ink cartridges are sold at a much higher price.

Setting the Price for an Item Relatively Low and Then