How Do Firms That Use Captive-Product Pricing Make Up for the Low

question 5

Multiple Choice

How do firms that use captive-product pricing make up for the low prices of their main products?

• A) They reduce the cost of the captive products.
• B) They provide the captive products as freebies.
• C) They set high markups on the captive products.
• D) They increase the price of the main products.
• E) They offer the captive products and main products together at a reasonable price.

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Definitions:

AIDA Message

An acronym for Attention, Interest, Desire, and Action, used as a guideline for creating persuasive messages in marketing.

Selling Points

The most appealing aspects of a product or service.

Benefits

Specific benefits that consumers can gain from a product's features being marketed.

AIDA Model

A marketing model that outlines the customer journey through Attention, Interest, Desire, and Action.