Solved: Captive pricing strategies, Marketing Management

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Captive pricing strategies

Problem:

Many companies use "captive pricing strategies" with products and its complements. They charge a premium price for a complementary accessory of the main product. For example a razor manufacturer will charge a low price for the razor and recoup its margin (and more) from the sale of blades, which fit the razor. Is it ethical to use such a pricing strategy? Should it be made illegal?

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Marketing Management: Captive pricing strategies

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