All of the following are advantages of using a price bundling strategy except
A)it can lead to higher profits for the firm.
B)it leads to reduced selling costs.
C)it benefits the consumer more than the firm.
D)bundled packages can be sold for a higher price.
E)it leads to reduced advertising costs.

Question

Quizplus · Accepted Answer

Price bundling is a pricing strategy in which a company offers several products or services for sale as one combined product at a single price, which is often lower than the sum of the individual product prices. This strategy helps firms to increase sales and profits, reduce selling and advertising costs, and get rid of excess inventory. However, it does not solely benefit consumers more than the firm as it allows firms to increase profits by offering multiple products at a discounted price.

All of the Following Are Advantages of Using a Price