captive product

  

Definition

Item made specifically for use with another item, usually from the same manufacturer. For example, shaving blades for a razor, parts for a machine, software for a computer or operating system. Pricing of captive product is often based on a product-mix pricing strategy where a low mark-up is set for the companion main product (such as a razor or operating system) with a high mark-up for the supplies (such as blades or application software).

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