In order to keep customers happy, cruise lines typically include the price of the cruise, the room, the meals, the beverages, and the poolside snacks into the overall price of the cruise.This is an example of:
A)risk aversion
B)transitivity
C)price bundling
D)expected utility theory
E)the sunk cost effect

Question

Quizplus · Accepted Answer

This is an example of price bundling, where the cruise line is bundling multiple items (room, meals, beverages, poolside snacks, etc.) together into one price. This is done in order to provide customers with a sense of value and convenience, as well as to encourage them to purchase additional services and amenities on the cruise.

In Order to Keep Customers Happy, Cruise Lines Typically Include