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

captive and non-captive market

captive and non-captive market

by Tanjir Ahmed -
Number of replies: 0

a captive market is:

“A group of consumers who are obliged through lack of choice to buy a particular product, thus giving the supplier a monopoly.”

There are many possible types of imperfect markets such as a monopoly (just one seller), oligopoly (too few sellers), monopsony (just one buyer), or oligopsony too few buyers.

Examples of captive-market environments include the food markets in cinemas, airports, and sports arenas, college textbooks, US cable companies, the Kosher food market in the United Kingdom, printer refills, truck stops due to fueling contracts and semi truck regulations, and phone calls and food in jails and prisons.

Non-Captive Market Locations means traditional, street-level free-standing and in-line restaurant locations that: 

(a) are not contained within larger retail or other foot traffic generating environments;

 (b) are not co-branded with other retail food service concepts.

Example :

Reason for dining A birthday party, Valentine day, wedding anniversary, or business meeting


Food preference of customers The type of food they want to eat. For example, Chinese dishes, south Indian dishes, sandwiches, and so on.