When consumers decide to purchase a music CD from Amazon.com, the company's Web site often suggests that consumers purchase an additional CD by the same artist for a combined price that is lower than the two CDs would sell for separately. Amazon.com is using:
A) Product-bundle pricing.
B) Complementary product pricing.
C) Full-line pricing.
D) Bid pricing.
E) Demand-backward pricing.

Question

Quizplus · Accepted Answer

Amazon.com is using product-bundle pricing, which is the practice of offering several products for sale as one combined product at a lower price than the combined individual prices of the separate products. In this case, Amazon is offering two CDs by the same artist at a lower price than if they were bought separately.

When Consumers Decide to Purchase a Music CD from Amazon