Question

Product Bundle Pricing has become a very popular pricing strategy. Identify 2 competitors that offer bundle pricing such as DirecTV/cable or cell phone companies. Are they making the most of product bundle pricing? What suggestions could you offer to improve their competitive positions against one another? Are you influenced by product bundle pricing? Why/why not?

Answer 1

In bundle pricing strategy companies sell a total package of goods for lower price than the price charged when all of them are bought separately . As for examples value meals at restaurants or music companies . Value meals at restaurants or fast food chains are very popular . It offers not only a plethora of options to chose from but also is sumptuous and easy on the pocket . This popularity of value meals increases sales , thus profits . Two such fast food chains which are close competitors are KFC and Mc . Donalds .

The family food packages and other value meals are very popular among consumers . To improve their competitive positions against each other they can offer as much variety as possible in their value meals combination . Product bundle pricing are helpful for consumers who need a huge amount . So they increase consumer surplus as well .