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HP sells an inexpensive printer for an entry-level user, but the printer cartridges that need continual replacement are fairly expensive. This demonstrates the concept of ________.

A) product line pricing
B) captive pricing
C) price bundling
D) reference pricing
E) prestige pricing

1 Answer

4 votes

Answer:

B)) captive pricing

Step-by-step explanation:

From the question, we are informed about how HP sells an inexpensive printer for an entry-level user, but the printer cartridges that need continual replacement are fairly expensive. This demonstrates the concept of captive pricing. Pricing is essential in business because production process isn't complete until goods reach to the consumer. pricing strategy utilize the strategy of using advantage over a product so that large volume of customers can be drawn to patronize the product. Captive product pricing can be regarded as the pricing of goods which can be described as goods that posses a “core product” as well as number of “accessory products.”

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