captive product pricing Definition | Business Dictionaries from
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Business Glossary


Business Definition for: captive product pricing
captive product pricing

the pricing of supplies, such as razor blades, staples, computer software, or camera film, which cannot be used without a companion product. Often producers of these products will use a product mix pricing strategy wherein they will set a low price on the companion product with a high mark-up on the supplies.

See also captive market , product bundling , tying agreement
Copyright c 2000, 1994, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.


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