Please read below and write rebuttal
Bundle Pricing Strategy is a very common strategy for a company to use in order to sell more products. “Bundle pricing is
built on the idea of consumer surplus. Every customer has a price that he is willing to pay for a particular good or service.
If the price you set is equal to or lower than what the customer is willing to pay, the customer will buy, as he considers the
price a bargain.” (Merritt 2015) The first example I can think of is the bundles that cable companies such as Comcast offer.
By getting a bundle, you get internet, phone, TV, and premium channels. There are different bundles for different pricing.
This method allows companies to increase their profit while giving customers a discount, or what looks like a discount.
Some constraints that may limit a firm’s ability to use bundled pricing would be if they only offer one product or service. I
find as companies grow larger, they begin to offer additional services and products from what they originally did. When they
grow, they are able to offer bundled deals—essentially saying, “Hey, we are doing this for you, why not do this other service
with us too and we will get you a deal.” This gives the company more customers, and makes the customer feel like they are
saving money.
Merritt, C. (n.d.). Bundle Pricing Strategy. Retrieved June 19, 2015, from
http://smallbusiness.chron.com/bundle-pricing-strategy-67049.html
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