Price bundling and its types

Price bundling:

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.

price bundling and its types
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Price discrimination and its types

Price discrimination is usually called monopoly price discrimination. It means a situation in which the monopoly firm charges different price from the customer for the same product. In such a situation the buyer has no choice but to buy it because of having no close substitutes. It is of three types: Continue reading “Price discrimination and its types”

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