Pricing
Price bundling, as defined by UMGC (2022), “The Pricing Framework and a Firm’s Pricing Decisions,” is a marketing technique where many products or services are sold together at a discounted or bundled price. This kind of pricing is crucial since it maximizes revenue, even at reduced prices, by encouraging the purchase of many items at once. Companies might increase their chances of making a sale by introducing a new product or service that complements an already popular one at a discounted price (UMGC, 2022). In addition, when a popular product or service is bundled with others, buyers are likelier to buy more than anticipated. A consumer may have only planned to buy one deodorant stick, but upon seeing a two-pack of an alternative brand for the same price, decides to buy both packs to save money before the bargain expires.
Successful price bundling resulted in the client purchasing four deodorant sticks of a different brand and spending more money than if they had purchased only two. Therefore, “price bundling” may help businesses expand their clientele. Customers’ decisions are influenced by price bundling mostly because they are enticed to make larger purchases. Customers are enticed to buy the bundle since it has several solutions. Customers are enticed to buy bundles of goods and services because they believe they are getting a better deal than if they bought the components individually. Customers are more likely to purchase after learning about the attractive price points available via the price bundling method.
References
University of Maryland Global Campus (UMGC). (2022). eReading: The pricing framework and a firm’s pricing decisions. Week 7: Learning Resources.
Microsoft Office. (n.d.). Microsoft Office is part of Microsoft 365. https://www.microsoft.com/en-us/microsoft-365/microsoft-office.
ORDER A PLAGIARISM-FREE PAPER HERE
We’ll write everything from scratch
Question 
Pricing
TOPIC: Pricing
PROMPT: Describe the concept of price bundling. Why might a company initiate this pricing strategy? Give an example of a company implementing price bundling and how the combined pricing strategy affects customer behavior. (Think about the telecommunications industry, restaurants, software, etc.)