Asked by Dillan Williams on Sep 24, 2024

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​Which of the following is an example of a "metering" strategy

A) ​A supermarket offers free parking space but charges higher for grocery
B) A television reseller spends time making sure that the picture quality of the bargain priced sets is fuzzy
C) Razors are sold at unit cost while razor blades have large profit margins
D) ​All of the above

Metering Strategy

A pricing strategy used by firms to charge consumers for the actual use of a service or product.

Profit Margins

The ratio or percentage of profit generated from sales after deducting costs, indicating the financial health and efficiency of a business.

  • Identify instances of "metering" strategy across different sectors.
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Ethan Darrow5 days ago
Final Answer :
C
Explanation :
Metering strategy refers to setting a low price for a product that requires a complementary product to function (in this case, the razor), while charging a higher price for the complementary product that is needed for continued use of the low-priced product (in this case, razor blades). This creates a consumer lock-in effect, where customers are more likely to continue buying the complementary product from the same company due to the initial investment they made in the low-priced product. Option A offers a bundled pricing strategy, while Option B describes a deceptive pricing strategy.