Product Bundle pricing is correct.
Company offer specific bundle. "Company fitted CNG kit" its a bundle offer by company.
if they offer CNG kit seprate from car then it is Option Pricing.
On Mon, Jun 13, 2011 at 1:19 AM, Humaira <mc100403601@vu.edu.pk> wrote:
Company D is dealing in car manufacturing and offered company fitted CNG in low price compared to the market price of the CNG kit.
Product Bundle pricing (i think it is correct)
Optional product pricing
Details:Product Bundle Pricing
Optional-Product Pricing
Many companies use optional-product pricing—offering to sell optional or accessory products
along with their main product. For example, a car buyer may choose to order power windows,
cruise control, and a CD changer. Pricing these options is a sticky problem. Automobile companies
have to decide which items to include in the base price and which to offer as options. Until recent
years, The economy model was stripped of so many comforts and conveniences that most buyers
rejected it.
Using product bundle pricing, sellers often combine several of their products and offer the bundle
at a reduced price. Thus, theaters and sports teams sell season tickets at less than the cost of single
tickets; hotels sell specially priced packages that include room, meals, and entertainment; computer
makers include attractive software packages with their personal computers. Price bundling can
promote the sales of products consumers might not otherwise buy, but the combined price must
be low enough to get them to buy the bundle.
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