Respuesta :
Establishing prices for razor blades that must be used with a razor blade system is known as captive-product pricing. Captive products are used for businesses to help maximize their revenue. Captive products are usually set at a high price whereas core products are set at a low price. The company attracts customers when they purchase the core products at a low price but make their large profits off of captive products set at high prices.
A pricing strategy that takes the advantage of the product and is used to attract a large number of customers is known as captive product pricing.
The correct statement for the given blank is:
Establishing prices for razor blades that must be used with a razor blade system is known as captive product pricing.
Captive Product Pricing is used to:
1. Captive product pricing is done on the products having core and accessory products.
2. The price of razor blades are determined that can be used with the razor blade system is captive product pricing.
3. The captive product pricing can be used to maximize the revenue, such that the core products have low prices, whereas accessory products are set at high prices.
Thus, the company attracts a large number of customers by captive product pricing and earns maximum revenue.
To know more about captive product pricing, refer to the following link:
https://brainly.com/question/7066033
