Bundle Pricing May Be Perceived to Be of Value by Customers

question 174

Multiple Choice

Bundle pricing may be perceived to be of value by customers because

• A) they always pay a lower price per item than they would have if they bought each item separately.
• B) they prefer buying a combination of bundled products in a single transaction, which saves time, effort, and perhaps money.
• C) the companies selling the products can sell them at a lower price because their costs of packaging are lower.
• D) they are purchasing complementary products, which is convenient for them.
• E) they can purchase items that are consumed frequently in larger quantities.

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Definitions:

Spuriousness

A relationship between two variables that appears to be causal but is actually due to both variables being influenced by one or more other variables.

Interpretations

The act of explaining or making sense of something, such as a text, action, or event.

Reliability

The consistency of a measure or system to perform and produce the same results across different instances and time periods.

Correlation

A measure of the relationship between two variables or sets of data.