Good morning. Today _________________ the strategy of captive pricing. _________________ , I'll define captive pricing, and _________________ I'm going to give you an example of an experience I had with captive pricing. _________________ , what is captive pricing? Well, captive means "not able to move around freely," like a prisoner who is held captive in jail and can't escape. Captive pricing is used for products that need supplies, _________________ razors that need razor blades, or printers that need printer cartridges. The company sells the main product—the razor or the printer—at a low price and doesn't make a lot of money on it. _________________ , consumers have to buy the high-priced supplies in order to use the product. _________________ , the company makes a lot of money selling the supplies. _________________ my experience with captive pricing. I got a free MP3 player this year when I bought a new computer. The price was great—free! _________________ I still had to buy the music. I don't want to tell you how much I've spent buying music, but I could probably buy another MP3 player for that price. This is an example of captive pricing _________________ in order to use the MP3 player, you need music. And this strategy works. _________________ , in 2007, people spent $1.7 billion dollars on downloading music from iTunes®, which generated a 30% profit for the company. So, _________________ , if you have the right product, a captive pricing strategy can generate ongoing profit for a company, long after the main product is sold.