Price Bundle Definition

Decent Essays
Yesterday, I read a funny post about lipstick on social network. One boy complained that her girlfriend loves using her lipstick to draw on his face when he was sleeping, and he asked his followers for help. Some reply below said that he should buy her an YSL or Chanel lipstick and see if she is willing to use them on his face. Indeed, if you buy an expensive lipstick, you probably use it for some valuable occasions instead of just making fun on your boyfriend’s face. Like the article said, people are more likely to consume a product if they are aware of its cost, even if this product does not provide you as much actual value as others.

As I read through this article, I found out that it has a very interesting explanation about the psychology behind the consumption and pricing, and that did solve some of my confusions that I had before. When I was in the marketing management class last semester, we had to read some case study articles. One of them mentioned that the show-up rate for people buying the single ticket for the football game is 90%, tickets for a 4 games is 80%, and tickets
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And that is why the show-up rate decreases when more games are included in the single purchase, since you cannot clearly quantify the value for each football games in the price bundling, and missing one or two games does not seem to matter that much. Because the price bundling is cheaper than the total cost of purchasing each game in separate, you might still feel like you earn it since you already attend some of the games. And for that, price sensitivity analysis is critical to determine which pricing strategy and bundling is appropriate for the firm in order to balance the demand and
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