GENERAL KNOWLEDGE

Detailed explanation-1: -Captive product pricing is the pricing of products that have both a “core product” and a number of “accessory products.” It’s a pricing strategy that takes advantage of a product that will be used primarily to attract a large volume of customers.

Detailed explanation-2: -Five product mix pricing situations Product line pricing – the products in the product line. Optional product pricing – optional or accessory products. Captive product pricing-complementary products. By-product pricing – by-products. Product bundle pricing – several products.

Detailed explanation-3: -Captive product pricing sets prices of products that must be used along with the main product.

Detailed explanation-4: -Optional feature pricing, also known as optional product pricing, is the practice of selling one main product at a lower price, then selling accessories for that product at a higher price. Companies may generate a higher amount of revenue when consumers purchase the accessories that complement the main product.