Question

Computer World sells laptops separately from accessory products like docking stations, anti-virus software, and external hard drives. This is referred to as ________ pricing.

Answer 1

Answer:

Optional product pricing

Explanation:

Optional product pricing occurs when a product is sold for a much lower price but complementary products or accessories are sold separately to generate profit.

A typical example is in the printer category, printer cartridges are sold separately from the printer when the one in the newly purchased printer runs out. The customer is forced to purchase new cartridges that the company benefits from as profits.

Optional product pricing is a strategy to provide less expensive technology while exploiting the frequent use of accessories to make a substantial profit.