Question

Hewlett Packard makes a variety of inkjet printers for personal computers. You can buy a basic 'all in one' printer that scans, copies and prints for less than $99. Replacement ink cartridges from Hewlett Packard cost between $30 and $60 depending on whether it is black and white or color ink. This is an example of _____________?

Answer 1

Answer: Captive product pricing  

Explanation: Captive product pricing refers to the strategy under which the company offers lower prices for the main product but earns revenue by charging higher for the captive products that are essential for the use of the main product.

In the given case, Hewlett packard are charging low for their printers but the prices of cartidges are high.

Hence from the above we can conclude that the above example depicts captive product pricing.