Product bundling is a marketing strategy in which a company puts multiple related products or services together and sells them as a single package at a discounted price. For example, a smartphone retailer could offer a bundle that includes a smartphone, a wireless charger, and a phone case for a discounted price compared to buying the items individually. This provides value to the customer and encourages them to purchase additional products they might need or didn’t think they needed.
Product bundling is characterized by its increased revenue as it encourages customers to buy more items than they originally intended, driving sales. Product bundling also allows businesses to cross-sell complementary products and upsell higher-value items. And by offering all the necessary items together, businesses make it easier for customers to complete their purchases without searching for each product individually, resulting in improved customer experience.
A challenge to product bundling could be customers feeling forced to buy products they don’t need, which can lead to frustration or deter them from purchasing. However, this can be countered by balancing the amount of times bundled products are advertised to customers.
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