It is the practice of selling two or more separate products together for a single price. This is usually done in case of goods which are sold as package. Like mobile phone with data cable, cover, head phone etc. it is of three types:
1.) Pure bundling: this type of price bundling is used where two products can be sold only as package. For example a new pen is always sold with its refill.
2. )Mixed bundling: it is used when the product can be sold separately as well as a bundle. For example pizza hut’s pan for four.
3. ) Tying: in this case a main product is purchased with the complementary product. Like nail polish is purchased with its complementary product nail polish remover.
The above is the meaning of price bundling and explanation of its 3 types.