Encyclopedia > Product bundling

  Article Content

Product bundling

Product Bundling is a marketing strategy that involves offering several products for sale as one combined product. This strategy is very common in the software business (for example: bundle a word processor, a spreadsheet, and a database into a single office suite[?]). It is most successful when :
  • a) there are economies of scale in production,
  • b) there are economies of scope in distribution,
  • c) consumers appreciate the resulting simplification of the purchase decision and benefit from the joint performance of the combined product,
  • d) when the marginal costs[?] of bundling are low.
  • e) when production set-up costs are high,
  • f) when customer acquisition costs are high

Product bundling is most suitible for high volume and high margin (ie.; low marginal costs) products.

See also : marketing, product management

List of Marketing TopicsList of Management Topics
List of Economics TopicsList of Accounting Topics
List of Finance TopicsList of Economists

All Wikipedia text is available under the terms of the GNU Free Documentation License

  Search Encyclopedia

Search over one million articles, find something about almost anything!
  Featured Article
Quioque, New York

... which 28.9% have children under the age of 18 living with them, 42.6% are married couples living together, 11.9% have a female householder with no husband present, and ...

This page was created in 25.2 ms