When a satellite dish company uses bundling to combine phone, dish, and broadband Internet access prices, it is attempting to influence a consumer's perception of price to make a product's price more attractive and reduce "sticker shock." This is an example of using a ____ pricing strategy.
A) competition-based
B) cost-based
C) promotional
D) competitive
E) psychological

Question

Quizplus · Accepted Answer

This is an example of using a psychological pricing strategy, as the company is attempting to influence the consumer's perception of price through bundling, to make the price more attractive and reduce the perceived "sticker shock."

When a Satellite Dish Company Uses Bundling to Combine Phone