Answered: Weekend hotel packages, vacation…

Weekend hotel packages, vacation packages, cable tv plans and season ticket plans are examples of: a. price metrics b. price offer configuration c. price fencing d. price bundling

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 7E

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Concept explainers

Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.

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Weekend hotel packages, vacation packages, cable tv plans and season ticket plans are examples of:

a. price metrics

b. price offer configuration

c. price fencing

d. price bundling

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