Question

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment is $35. But the combo price is $50.

This is referred to as ________ pricing.

A. optional-product
B. captive-product
C. product line
D. by-product
E. product bundle

Answer 1

E. product bundle

Step-by-step explanation:

Product bundling is pricing strategy adopted by companies to sell complementary products of services instead of individuals e.g a toothpaste and an attached toothbrush. This drives the demand for both of these products hence increasing revenues. In this case, a haircut and a conditioning treatment are complementary services. Offering them as a package under one price is known as bundle pricing making choice E correct.