Register
Priceline and Expedia are two online travel companies. Both are known to utilize ___________ of services such as airline flights and hotel stays to entice customers to purchase both at the same time, for
431,057 views
7 votes
7 votes
Priceline and Expedia are two online travel companies. Both are known to utilize ___________ of services such as airline flights and hotel stays to entice customers to purchase both at the same time, for a more reasonable price than what they would pay separately for each of these services. Multiple Choice last-minute fanning trade marking bundling branding

User Sean Houlihane
by
2.7k points

1 Answer

16 votes
16 votes

Answer:

Bundling

Step-by-step explanation:

Bundling

This is simply regarded as a form pricing strategy. It is used by managers to give or offer several products or services as one package (termed a "bundle"). This is very important as it is useful if your customers' demand is very heterogeneous. Know that price discrimination is infeasible here.

Types of bundling

1. Simply bundling

2. Mixed bundling.

Managers of organizations, businesses or firms do use ths bundling method as it can;

1. It can increase the sellers profit if customers have varied tastes.

2. It is a said to find means to emulate perfect price discrimination when perfect price discrimination is not possible or it is not legal to charge multiple prices for the same product

bundling work best ehen there is big variance in consumers' price sensitivity of demand and when market conditions make it hard to price discriminate.

User Shivratna Kumar
by
3.3k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that Group of answer choices bond interest is deductible for tax purposes. interest must be
Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options for the 3 month break follow: (1) Work full time at a local accounting firm
In January of the current year, Dora made a gift of stock to her granddaughter. At the time of the gift, the stock was worth $15,000. Several months later in the same year after the gift, a $500 dividend
Link Copied!