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Chapter 8
6.7 Bundling
Bundling is putting a package of products together to make, for example, a complete
kit for customers, which can then be sold at a temptingly low price.
It is a way of creating value for customers and increasing company profits. It is a
strategy that is often adopted in times of recession when organisations are
particularly keen to maintain sales volume. One industry where this tactic started in
the recession of the early 1990s is the computer industry.
A manufacturer might decide to substantially reduce the profit margin on some
hardware, such as printers. If, for example, only half its PC purchasers would also
buy the company’s model of printer, a bundled package which includes the PC and
the printer for a lower combined price may well prove very successful.
On the other hand, some customers will be put off by product bundling as they do not
want the complete package; they will resent the increased price, however small it is.
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