When consumers decide to purchase a music CD from Amazon.com, the company's website often suggests that consumers purchase an additional CD by the same artist for a combined price that is lower than the two CDs would sell for separately. Amazon.com is using:
A) Product-bundle pricing.
B) Complementary product pricing.
C) Full-line pricing.
D) Bid pricing.
E) Demand-backward pricing.

Question

Quizplus · Accepted Answer

Product-bundle pricing is a strategy used by companies to sell multiple products together as a bundle at a discounted price. In this case, Amazon.com is offering customers the option to purchase two CDs by the same artist for a lower price than if they were to buy the CDs separately. This is an example of product-bundle pricing. Complementary product pricing involves selling products that go together, such as a printer and ink cartridges, at a discounted price, and full-line pricing involves selling a complete line of products at various price points. Bid pricing involves offering a price for a particular product or service in response to a request for proposal, and demand-backward pricing involves determining the price of a product based on what customers are willing to pay.

When Consumers Decide to Purchase a Music CD from Amazon