Question

Difference between optional product pricing and captive product pricing

Answer 1

Answer:

Optional-product pricing is a method of pricing that has becoming increasingly popular in the airline industry. ... This pricing strategy deems core products and offerings at low costs, to then profit from selling more costly accessories elsewhere.

Captive products are strategically used to maximize revenue. ... Low price are offered for the core product, but high prices are placed on captive products. This attracts customers to the core product with a low price but allows sellers to make a profit off the captive products, which are necessary to use the product.

Answer 2

Answer:

★ We speak of captive product pricing when companies make product that must be used along with the main product. On the contrary, in optional product pricing, we should think of products that can be bought/sold with the main product. Examples for captive product pricing are razor blade cartridges and printer cartridges.

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