When a firm combines several products and offers the entire package at a reduced overall price compared to buying each item separately, it uses:
ABy-Product Pricing
BTwo-Part Pricing
CCaptive Product Pricing
DProduct Bundle Pricing
Explanation
* Product Bundle Pricing combines several complementary products into a unified package offered at a discounted total rate (e.g., fast food meal deals).
* Captive product prices dependent items; By-product sells waste items; Two-part splits price into fixed fee plus variable usage.
* Bundling promotes sales of products consumers might not otherwise buy, enhancing overall transaction value.
Exam Relevance
- Topic: Pricing Strategies
- Subtopic: Product Mix Pricing

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