Question

Noticing that themed envelopes aren't selling well, Charles Payton decides to offer customers a special "letter writing" kit. He prices the kit—which comprises letter paper, matching envelopes, and pens—at $5, even though the combined prices of the individual items is $8. Which of the following pricing strategies is he using?A) optional product pricing

B) product bundle pricing
C) by-product pricing
D) dynamic pricing
E) captive product pricing

Answer 1

B) product bundle pricing

Step-by-step explanation:

He is using product-bundle pricing in which various products are offered for sale in one combined unit that is usually marked at a lowered price compared to the sum of their separate purchase prices as here Charles Payton decided to offer customers a special "letter writing" kit comprises letter paper, matching envelopes, and pens at $5, even though the combined prices of the individual items is $8.