The Pricing Strategy Of T Shirts

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This type of pricing gives customers a good deal and encourages them to buy more which saves on packaging in which seller gives quantity discount. In this case the bundle of 5 T-shirts s priced lower than the sum of the price of individual T-shirt. This type of pricing is based on the demand schedule where customers may have high willingness to pay for T-shirt but not for 5 T-shirts, and the pricing discount is to match customer willingness to pay. 5 T-shirts are packed for one price using a bundling pricing which is a second-degree price discrimination that used to extract consumer surplus. This is an example of a promotional bundle in the mixed bundling category in which the bundled price of the 5-Tshirt is lower than the total price of individual product price added together. The consumers have the choice of buying packs of 5 T-shirts or buying a T-shirt without the pack. In this pricing strategy identical T-shirts are packaged together in order to enhance profits by forcing customers to make an all decision. The mixed bundling pricing provides a means by which the company can get the consumer to pay the full value of the 5 units of packaging 5 T-shirt a product and selling them as one package, the company can earn more than selling per T-shirt price. The profit maximizing price is the 5 T-shirt for $10 on a pack is the total value the consumer receives for the package, including consumer surplus and business could enhance profits even consumers have identical demands.
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