Question

Define block pricing and bundling. Give one real world example for each strategy. Discuss why a...

Define block pricing and bundling. Give one real world example for each strategy. Discuss why a firm would use such a strategy

Homework Answers

Answer #1

Block Pricing : It is a pricing strategy in which identical products are packaged together in order to increase profits by forcing customers to make a decision . By packaging the products and selling them as per unit , the firm earns more than if it sold all of the units at per unit price.

Example of block pricing is the package of toilet paper given by the supermarkets to the customers , bundling the toilet paper into 24 or 48 units to buy or not to buy the pack, thereby making larger profits .

Product Bundling : In it , companies sell a package or set of goods or services for a lower price than they would charge if the customer bought all of them separately . Pursuing a bundle pricing strategy allows you to increase your profit by giving customers a discount .

Common examples of bundling are packages on new cars , value meals at restaurants , etc.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Define and give a real-world example for positive and negative reinforcement Define and give an example...
Define and give a real-world example for positive and negative reinforcement Define and give an example of Proactive Interference and Retroactive Interference   Create a mnemonic device of your own to remember the Four Basic Units of Language
3. Identify and discuss two of the main reasons why firms become so infatuated with pricing...
3. Identify and discuss two of the main reasons why firms become so infatuated with pricing and give a real world example of each. *******Please be thourough and please do not use images for the answer.
Give an example of a real-world monopoly or a firm close to being a monopoly. Discuss...
Give an example of a real-world monopoly or a firm close to being a monopoly. Discuss what you think is the source(s) of its market power. For instance, do you think this is an example of a cost-based monopoly or is there some other explanation, such as advertising or network effects, etc.
Give an example of a rate of change that is used in some real world situation...
Give an example of a rate of change that is used in some real world situation (with the exception of velocity). Discuss the meaning of the instantaneous rate of change in that context and why such a concept might be useful.
Discuss the derivative and integral in terms of units. For each, provide a real-world example to...
Discuss the derivative and integral in terms of units. For each, provide a real-world example to accompany your explanation.
Give a real world example of a duopoly and a cartel.
Give a real world example of a duopoly and a cartel.
Make up a real-world scenario that describes disintermediation! Do not simply describe it,,,give a real-world example!...
Make up a real-world scenario that describes disintermediation! Do not simply describe it,,,give a real-world example! You can make one up if you care to!
Use an example form the text or one from the real world that illustrates the effective,...
Use an example form the text or one from the real world that illustrates the effective, or ineffective, use of decision making using the steps listed. Discuss why they were successful or not successful. Be specific about which steps were missed, not used, ineffective, etc.
Give a real world example of a perfectly conpetitive market. give a detailed response.
Give a real world example of a perfectly conpetitive market. give a detailed response.
1. Discuss the effects of the economy on the company's pricing strategy? 2. Discuss why an...
1. Discuss the effects of the economy on the company's pricing strategy? 2. Discuss why an enterprise considers raising prices? Try for 2 illustrative examples of the problem of price increase in practice?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT