In which ways captive market differ from non captive market? discuss with example.

Captive and non-captive market

Captive and non-captive market

by Md Arifur Rahman -
Number of replies: 0

Captive marker : A captive market is one in which there are suppliers who control the supply of specific goods. This scenario results in high demand for the little supply available. Consumers do not have a choice but to buy the presented supply. This leads to higher prices with limited diversification for consumers.

example: 

1. Television and internet providers are very limited in rural areas, thus resulting in a captive market situation.

2.Eating establishments in airports are a highly captive market.

Non-captive market : Non-captive markets are those businesses that are not able to guarantee sales, because of available business nearby that sells the same goods as you. As customers have varying preferences, your business must also be able to empathize with your clients and adjust to their needs.

example :

1.  a telephone company certificated by the Commission to provide local Exchange Service within AT&T-21STATE’s franchised area.

2.  an individual Right-of-Way location (typically Street, Alley, Sidewalk, Intersection, or Path) identified to make up a whole Project;