Price bundling is a particular strategy used by retailers to boost sales, dispose of less-successful products, and improve customer loyalty. It implies the selling of several items at higher margins altogether, providing customers with a discount at the same time (Baldwin, 2020). In other words, with price bundling, several different products are offered as a package, which is lower than the prices for every product if it is bought separately. It goes without saying that this strategy impacts customer behavior as people prefer packages guided by their prices, especially when all included items are desirable. There are multiple examples of price bundling, especially in the food industry. Thus, multiple fast-food restaurants, such as McDonald’s, Burger King, and KFC, offer combo meals that are more cost-efficient in comparison with the sum of included items’ prices.
References
Baldwin, G. (2020). What is bundle pricing?. Price Points. Web.
Meyersohn, N. (2021). Nikes are getting harder to find at stores. Here’s why. CNN Business. Web.
Thomas, L. (2021). Nike could run out of sneakers made in Vietnam as Covid crisis worsens, S&P Global warns. CNBC. Web.