When a firm requires a customer to buy additional products in order to buy one of its products,this is known as a(n):
A) bundling contract.
B) price differentiation.
C) oligopolistic device.
D) two-part tariff.
E) maximizing device.

Question

Quizplus · Accepted Answer

A bundling contract is a marketing strategy where a firm requires a customer to purchase additional products in order to buy its main product. This strategy is used to increase the sale of their other products and to make the customer feel that they are getting a better deal by buying more items. Therefore, the best choice in this scenario is option A, bundling contract. Options B, C, D, and E are incorrect as they do not accurately represent the given scenario.

When a Firm Requires a Customer to Buy Additional Products