R.W.Hunt & Sons,a distributor of rifles and anything needed for hunting or target practice,has packaged a new rifle scope with a package of paper targets at one low price.R.W.Hunt is actually selling the scope slightly below cost,but the paper targets are very profitable.R.W.Hunt is using a pricing technique called:
A) price lining
B) two-part pricing
C) psychological pricing
D) price bundling
E) bait pricing

Question

Quizplus · Accepted Answer

R.W.Hunt is bundling the rifle scope with the paper targets to increase sales of both items. The lower price of the scope encourages customers to make the purchase and the profitable paper targets offset the cost of the discounted scope. This is an example of price bundling.

RWHunt & Sons,a Distributor of Rifles and Anything Needed for Hunting