Question

True or false: by bundling the two snacks together, snackyville can force grocery stores to pay more than they would be willing to pay when purchasing the snacks separately.

Answer 1

Answer: false

Step-by-step explanation:

Suppose most grocery stores are willing to pay $2,850 for 100 bottles of the barbacuffalo and $0 for 10 bottles of the green ketchup. At most, grocery stores would pay $2,850 for the bundled condiments, the same amount they would pay to simply buy 100 bottles of barbacuffalo on their own. Forcing grocery stores to accept worthless products as part of the deal will not increase their willingness to pay.

Answer 2

Bundling is a strategy which allows the customer or consumer to pay the products of the bundle without excuse. This is usually in pack forms. usually the prices in bundle forms are less than the prices of individual products. In this case, with regards to the statement, the food company can truly enforce department stores to pay higher in individual prices. Answer is true.