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Impact of Product Bundle Pricing Considerations Assignment Help as a Strategy

Product Bundle Pricing Considerations Homework Help is a marketing strategy. In this strategy, the different products are sold together in a bundle as its name suggests. This strategy is most frequently used in imperfect competitive markets like telecommunications, healthcare, technology etc. For example, bundled software will contain a number of software programs which will allow you to perform various operations.

It will have software dedicated to spreadsheet manipulation, word processor, e-mails, slide shows etc. Thus, the bundled software contains products which belong to the same category but perform different functions. Similarly, bundled products consist of complementary products.

A company can use Product Bundle Pricing Considerations Homework Help only after it considers the following factors:

  • Economics of Scale

The company enjoys economies of scale. This enables it produce varying volumes of the product at a lower cost of production.

  • Lower margin of profit

It can afford to have a lower margin of profit. When a company sells its products in a bundle then the price of such a bundle is generally lower than the cost of each individual product. Thus it results in a lower profit margin.

  • Diversification of Product lines

Having a varied product line helps to attract more customers. As they have the choice of a larger variety of products.

  • Effective means of acquiring customers

In markets where promotional strategies are expensive, companies prefer using Product Bundle Pricing Considerations Assignment Help. This is because the bundle of products provides various products at a lower rate as compared to individual price of the products.

 

Types of Product Bundle Pricing Considerations Homework Help

There are 2 types of Product Bundle Pricing Considerations which are:

  1. Pure Bundling

In Pure Bundling, the products are sold together in one bundle. They cannot be sold separately or in any other form. This is commonly seen in packaged products which are bundled together from the point of packaging. Such a strategy is used for products which are complementary to each other and cannot be used without the other.

There are two further classification of Pure Bundling –Joint Bundling and Leader Bundling. In Joint Bundling, two products are bundled together at the price of one of the products. The other product in the bundle is perceived to be free with the product. While in Leader Bundling, the leader product is provided at a lower cost if purchased with a non-leader product.

  1. Mixed Bundling

In Mixed Bundling, the products are available in a bundle but can be purchased individually too. This is done in case of loose products or products which have been packaged separately. The products can be used individually or can be used with other products too.

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