How Is Mixed Bundling Profitable for Both Seller and Buyer?
Business analysts always try out different strategies to maximize the profit level of a company. As a student of economics, it is very important for you to learn different market strategies and understand them clearly. In future, it will help you to become a good business analyst or an economic analyst. Market strategy is a huge chapter, which includes product bundling. Myhomeworkhelp.com explains you two types of bundling briefly and offers you mixed bundling homework help whenever you want.
What is product bundling?
Sometimes, a company offers several items for sales as a combined product. This is a marketing strategy which is known as product bundling. It is commonly practiced in several imperfectly competitive product markets. Some industries where product bundling strategy is commonly used are telecom industries, financial services, healthcare sector, and IT industry.
An example of product bundling in IT industry is an operating system, MS office package, and antivirus software along with a laptop or a desktop. A fast food eatery sometimes combines separate menus to offer a complete meal.
While you are studying product bundling, you must be able to justify how do different products should be bundled so that it is profitable for a company as well as for the buyer. Mixed bundling assignment help enables you to determine which items can be bundled together.
There are two types of bundling:
Pure bundling- In this case, a buyer has to purchase the entire bundle. It cannot purchase a single product. Pure bundling is further classified into joint bundling and leader bundling.
Mixed bundling- In this case, a buyer has an option to purchase either the whole bundle or each product in the bundle separately.
Objectives of mixed bundling homework help:
- Enabling our students to recognize the differences between mixed bundling and pure bundling.
- To explain how a monopolist can use bundling as a price discrimination tool.
- To study how bundling impacts competition in oligopolistic markets.
- To understand how this marketing strategy results in a softer or a tougher price competition.
- To develop the skill of enhancing profits by using mixed bundling.
How to increase profit using mixed bundling?
Every company aims to earn maximum profit. Therefore, it is necessary to have the skill of combining products in such as way that it can generate maximum profit for a company. According to managerial economists, mixed bundling enabling buyers to buy the items as a bundle or separately.
A customer considers two types of prices reservation price and actual price. Reservation price is the price that a buyer is ready to pay for a particular product, while actual price is the price the seller is offering. While purchasing, a buyer considers the price in a bundle as well as the price of the single product. Before offering products in bundling, a survey team must act smartly to determine reservation price. And set the actual price accordingly.
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Our mixed bundling homework help can provide the right solution for any scenario. Our experts know when mixed bundling is more profitable. It is more profitable at positive marginal costs.
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