Question

Companies provide customers with new products that are connected or related to their existing products to satisfy customers' needs for a complete package of related products. This is called product bundling. What is the goal of product bundling?

a. To charge customers premium prices for a premium set of products or services
b. To offer customers lower prices for a premium set of products or services.
c. To charge customers premium prices for a set of products or services that minimally satisfies their needs.
d. To increase profitability by offering a wider set of products without a specialized focus.

Answer 1

The goal of product bundling is to offer customers a better price for acquiring multiple related products or services, providing an advantage over purchasing each item separately, which in turn can increase company profitability.

Step-by-step explanation:

The goal of product bundling is to offer customers an advantage by allowing them to acquire multiple products or services for a better price. This marketing strategy can increase a company's profitability by selling more products together, typically at a price that seems more appealing than purchasing each item separately. Unlike tying sales, which can be controversial and anticompetitive, bundling is legal and often benefits the consumer as well as the company. A common example of bundling can be seen with cable companies offering combinations of cable, internet, and phone services. When a company provides bundled services, customers usually get a special price that is more attractive than the cost of buying each service individually.