Pricing Society - Bundling's Impact on Pricing by Tim Smith, PhD - Online Pricing Course from the Professional Pricing Society

Bundling's Impact on Profits

By: Tim Smith, PhD

Hotels bundle Saturday brunch with a Friday-night stay-over. Microsoft bundles Word with Excel in Office. O2 bundles ADSL with Mobile. Restaurants bundle a three course meal into a price fixed offering. Business customers ask for “the entire bundle, but at a discount.”

Has bundling become silver-bullet pricing tool for all pricing and selling problems or is it a pernicious value destroying discount disguised as a rose?

Clearly, it lies somewhere in the middle, and pricing professionals need to know where.

Bundling’s Impact on Profits reveals the power of bundling to improve profits as well as its limitations and potential pitfalls using case studies, economics, financial analysis, and marketing strategy.

Key Learning Points:

Distinguish between Mixed Bundling and Pure Bundling
Identify situations where Mixed Bundling may improve profitability
Construct analytical models to demonstrate the financial value of mixed bundling
Inform market research inquiries to identify the optimal price points in a mixed bundling strategy
Understand how bundling deployed on a tactical or promotional basis influences consumer behavior and perceptions

PRESENTER:

Tim Smith, PhD, Wiglaf Pricing

Tim is an Adjunct Professor of Marketing at DePaul University and Managing Principal of Wiglaf Pricing, and author of Hawks, Seagulls, and Mice, Paradigms for Systematically Growing Revenue in Business Markets. His research focuses on applying quantitative and qualitative rigor to enable price decision making in the face of uncertainty.