HP sells an inexpensive printer for an entry-level user, but the printer cartridges that need continual replacement are fairly expensive. This demonstrates the concept of .

Captive pricing.

Explanation:

Marketing mix can be defined as the choices about product attributes, pricing, distribution, and communication strategy that a company blends and offer its targeted markets (customers) so as to build and maintain a desired response.

Generally, a marketing mix is made up of the four (4) Ps;

I. Price.

II. Promotions.

III. Place.

IV. Products.

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services. Thus, it refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. Also, the price of goods and services are primarily being set by the seller or service provider.

Captive pricing also referred to as complementary pricing, can be defined as a marketing technique which typically involves a customer continually buying the peripherals of a product for its normal operations. Thus, it involves getting a commitment from a customer for continuous purchase of a basic product such as a printer cartridge used in a printer.

In conclusion, captive pricing entails the pricing of a product that comprises of both a core product and its peripheral products or accessories.

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