Question: Consider the following statements: Statement 1 : The razor - blade pricing strategy involves selling the initial product at a low cost ( or even
Consider the following statements:
Statement : The razorblade pricing strategy involves selling the initial product at a low cost or even a loss and making profits from highmargin complementary products, as seen with razors and blades.
Statement : In the reverse razorblade pricing strategy, the initial product is sold at a high price, and complementary products are offered at a lower price, encouraging longterm customer retention.
Only statement is correct.
Only statement is correct.
Both statements are correct.
Neither statement is correct.
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