In some industries prices are set low, subsidies are provided, and other price-reducing mechanisms are used to

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In some industries prices are set low, subsidies are provided, and other price-reducing mechanisms are used to establish a long-term relationship with the buyer. Utilities, for example, sometimes use incentives to encourage contractors to install electric- or gas-powered appliances. Manufacturers may price equipment low, then depend on service and parts for profit contribution. What are the advantages and limitations of this pricing strategy?
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Strategic Marketing

ISBN: 978-0078028908

10th edition

Authors: Nigel Piercy and David Cravens

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