Sapphire Insurance offers Home, Auto, and Life insurance to customers. The price for each policy is calculated based on the specific customer's background. Sapphire offers a 5 percent discount to customers who purchase two policies and a 10 percent discount to those who purchase all three. Sapphire is most likely using which alternative pricing strategy?

Question

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Sapphire Insurance is using a bundling pricing strategy by offering discounts to customers who purchase multiple policies together, encouraging them to buy more than one type of insurance policy by providing a financial incentive.

Sapphire Insurance Offers Home, Auto, and Life Insurance to Customers