Captive Product Pricing Example
Captive product pricing is a marketing and profit incremental strategy. Captive pricing must be done carefully for the pricing of a core product could affective the value of a captive product and vice versa. What Is Captive Product Pricing Definition Examples Faq Airfocus Often companies set a low price for the core product and rely on consistent income. . The captive product scheme is pervasive in retail businesses because the complementary items exponentially cover the smaller profit margin from the base product. For example the cell phone itself is the core product. Razors Customers may notice that even buying a razor requires multiple purchases. Captive pricing happens when an accessory product is necessary to purchase in order to use a core product. Captive product pricing comes under product line pricing. Captive product pricing definition. The Captive Product Pricing strategy attracts consumers with...