WebMay 7, 2024 · Captive Pricing – Under the captive pricing strategy a company offers a basic product that they sell at a low price or given away for free. However, as a consumer you will receive the full benefit of the item when you buy additional products. The company might lose money on the base product, but it will make a fairly good profit on the ... WebCaptive product pricing is a pricing strategy that involves selling a product at a lower price to attract customers, while also requiring them to purchase a related product at a higher price. This related product is known as the captive product, and it is often necessary for the customer to use the main product effectively.

12 Real-World Pricing Strategy Examples - FreshBooks

WebNov 1, 2024 · This pricing strategy is not to be confused with captive product pricing, as they’re both based on similar concepts. Optional Product Pricing vs. Captive Product Pricing. Optional and captive product pricing may seem like the same pricing strategy, but a fundamental difference lies in the second product a consumer will purchase. With … Web32) Cellpoint uses two-part pricing for its long-distance call charges. Because this is a service, the price is broken into a fixed fee plus a(n) _____ usage rate. A) fixed B) variable C) standard D) market E) optional Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 11.2: Explain how companies find a set of prices that maximizes … roadway freight company

What Is Optional Product Pricing? - HubSpot

WebApr 7, 2024 · Captive Product Pricing. This pricing strategy works best if customers have to keep buying from you to continue using your products. Examples of this are shaving products and subscription services like the Dollar Shave Club. Once you buy a razor from a particular brand, the customer will have to keep buying blades and other accessories … WebA product mix pricing strategy is the tactic of pricing products so that each plays a specific role within the broader product mix. Let’s break that definition down a little further by its key terms. A product line is a selection of similar products from a brand or manufacturer that fit into a coherent category. WebCaptive product pricing is a pricing strategy that involves selling a product at a lower price to customers who have already purchased another product from the same company. This pricing strategy is commonly used by businesses to increase customer loyalty and encourage repeat purchases. In this article, we will discuss the advantages of captive ... roadway fll