Bundling of products becomes _____, if the valuations of different customer groups are _____.

Question

Quizplus · Accepted Answer

If the valuations of different customer groups are positively correlated, it means that each customer group values the bundled products similarly. Therefore, they are less likely to see the value in purchasing a bundle and may be more inclined to buy individual products instead. As a result, bundling becomes less profitable in this scenario.

Bundling of Products Becomes _____, If the Valuations of Different