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Promotional Pricing: Product Bundling

Another pricing adjustment designed to increase sales is to offer discounted pricing when customers purchase several different products at the same time. Termed bundle pricing, the technique is often used to sell products that are complementary to a main product. For buyers, the overall cost of the purchase shows a savings compared to purchasing each product individually. For example, a camera retailer may offer a discounted price when customers purchase both a digital camera and a how-to photography DVD that is lower than if both items were purchased separately. In this example the retailer may promote this as: “Buy both the digital camera and the how-to photography DVD and save 25%.”

Bundle pricing is also used by marketers as a technique that avoids making price adjustments on a main product for fear that doing so could affect the product’s perceived quality level (see our discussion above under Step 3: Set Standard Price Adjustments). Rather, the marketer may choose to offer adjustments on other related or complementary products. In our example the message changes to: “Buy the digital camera and you can get the how-to photography DVD for 50% less.” With this approach the marketer is presenting a price adjustment without the perception of it lowering the price of the main product.

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