Which of the following is a reason for firms to bundle products?
A)To extract additional profit from a customer base with heterogeneous product demand
B)To extract additional profit by charging higher prices for the goods in a bundle
C)To clear the old stock of the product
D)To increase customer welfare and satisfaction

Question

Quizplus · Accepted Answer

Bundling allows firms to extract additional profit by catering to customers with varying demands, offering a package that appeals to a broader audience and maximizing revenue from different consumer segments.

Which of the Following Is a Reason for Firms to Bundle