Pricing the product low in order to stimulate demand and increase the installed base, then trying to make high profits on the sale of complements that are relatively high in price, is known as the:

Question

Warren Hahn

Chemistry

6 July, 20:25

Pricing the product low in order to stimulate demand and increase the installed base, then trying to make high profits on the sale of complements that are relatively high in price, is known as the:

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Answers (1)

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Franklin Watson · Answer 1

razor and blade strategy

Explanation:

Razor and blade strategy -

It refers to the method of pricing, where the price of one of the item is reduced in order to increase the sale of another item, is referred to as razor and blade strategy.

It is a type of pricing tactics used by the company to indirectly earn profit for their goods and services.

Sometimes, fews goods are given free along with certain products, in order to earn profit.

Hence, from the given information of the question,

The correct answer is razor and blade strategy.