“Manufacturers of razors and cameras often price these products low and set high mark ups on razor…
In product-mix pricing strategies (Kotler & Keller), 'Captive-product pricing' is used when manufacturers of a main product (such as razors, cameras, or printers) price the…
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“Manufacturers of razors and cameras often price these products low and set high mark ups on razor blades and films.” As per the above statement, manufacturers of razors and cameras are using which one of the following?
Answer and explanation
Correct answer A
In product-mix pricing strategies (Kotler & Keller), 'Captive-product pricing' is used when manufacturers of a main product (such as razors, cameras, or printers) price the core durable unit low to stimulate adoption, while setting high markups on the proprietary consumable supplies required to operate it (razor blades, film, or ink cartridges).
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UGC NET Commerce