Which of the following scenarios best illustrates bundling?
A) Clean Brush Inc. sells its electric toothbrushes for a low cost, but charges a high price for replacement brushes.
B) Cumulus Media Inc. sells its cloud computing network by having customers pay for the service as they use it.
C) Sharp Cable Inc. sells its basic TV channels for free but charges high prices for any channels that customers add on later.
D) Fresh Seeds Inc. sells seed packages, in which a person can buy a package of three types of seeds at a discounted price compared to buying the seeds individually.

Question

Quizplus · Accepted Answer

The bundling business model sells products or services for which demand is negatively correlated at a discount. For example, in the Microsoft Office Suite, a user might value Word more than Excel and vice versa. Instead of selling both products for $120 dollars each, Microsoft bundles them in a suite and sells them combined at a discount, say $180.

Which of the Following Scenarios Best Illustrates Bundling