Which pricing strategy involves pairing several products together and selling them for less than their individual prices?

Which pricing strategy involves pairing several products together and selling them for less than their individual prices?

• A. Economy Pricing
• B. Bundle Pricing
• C. Market Penetration
• D. Price Skimming

Answer: (B)

Bundle pricing is when you package several products together and price the bundle at less than the sum of buying each item separately. This creates added value for customers who want multiple items and can boost overall sales by encouraging larger purchases, while also helping move inventory. A fast-food combo or a software suite sold as a package at a discount illustrates this idea well, because the total price is lower than buying each component on its own. This approach is distinct from economy pricing, which aims to keep prices low across all items rather than offer a bundled discount; from market penetration, which uses low pricing to win a larger share of the market for a new product; and from price skimming, which starts with a high price and lowers it over time. The scenario described—pairing items together and selling them for less than their individual prices—fits bundle pricing exactly.

Bundle pricing is when you package several products together and price the bundle at less than the sum of buying each item separately. This creates added value for customers who want multiple items and can boost overall sales by encouraging larger purchases, while also helping move inventory. A fast-food combo or a software suite sold as a package at a discount illustrates this idea well, because the total price is lower than buying each component on its own.

This approach is distinct from economy pricing, which aims to keep prices low across all items rather than offer a bundled discount; from market penetration, which uses low pricing to win a larger share of the market for a new product; and from price skimming, which starts with a high price and lowers it over time. The scenario described—pairing items together and selling them for less than their individual prices—fits bundle pricing exactly.