Question

Which of the following is an example of price bundling? Select one: a. Charging relatively more for razor blades than razors. b. A cable company sells the monthly service at $75/month and adds HBO for $25, even though the two normally go for $90 and $40, respectively. c. In 2018, Microsoft sold four editions of Microsoft Windows, each with a different level of features. d. A hotel in Vegas offers a room for $50 per night, while the exact same room at other hotels would cost $105 per night. e. Kraftwork sells a sowing kit for $29.99 instead of $30.00 to imply a bargain.

Answer 1

Option B

In a bundle pricing, companies sell a package or set of goods or services for a lower price than they would charge if the customer bought all of them separately. Common examples include option packages on new cars, value meals at restaurants and cable TV channel plans. If the cable service and HBO are separately taken then the charges are $90 and $40 but the bundle price for both is less.