bundling
Definition
The practice of joining related products together for the purpose of selling them as a single unit. This is generally carried out when the seller thinks that the characteristics of two or more products and services are such that these products might appeal to many consumers more as a package than as individual offerings e.g. local and long distance services. Bundling arrangements usually feature a special pricing arrangements which make it cheaper to buy the products and services as a bundle than separately. Bundling is also often a way for creating a larger market for relatively low value products by selling them cheap (or giving them away free) with a higher value product e.g. giving away free floppy disks with the purchase of high-end computer software. The floppies might be an incentive to buy that particular software, and quite possibly the software price has a slight mark-up in it to cover the cost of the floppies.
Use bundling in a sentence
“ When I shop online for things, I always look for bundling deals because I can buy larger quantities for the lowest cost . ”
“ The bundling strategy of the internet provider was excellent as it would only cost ten dollars more per month for cable tv. ”
“ Consumers who use Cablevision Inc., have fewer viewing options and a-la-carte channels because the company sells their services by bundling all their pay tv channels into one package. ”
