Bundling, 191117-PDF_ENG

Group1
Kanupriya Gathoriya (PGP10023)
Sourabh Tondale (PGP10116)
Kanika Goraya (PGP10209)
Priyam Soneji (PGP10235)
Pratik Sarin (PGP10244)
Pratik Sarin (PGP09219)
 1. Single ticket for the concert series either in place of, or addition to, offering
tickets for each concert separately.

Clauses for BUNDLED PRICING

(Revised Bundled pricing <= Sum of individual prices of bundle commodities )

Positives:

● Lower bundle prices tend to have positive response from target audience for overall bundle
● Orchestra can attract more audience for both the programs
● In this case, Bundle pricing may drive customers to experiment, to pursue earlier uninterested concerts

Negatives:

● (Pure disliker of the other program) segment will not welcome bundled pricing.
● Can lead to lesser revenues for overall concert due to reduced prices of bundle, as against individual pricing
scenario for programs
 2. Multiproduct company sells two products as a bundle

Purchase either A or B alone:

● The willingness to pay for each product ranges from $0 to $100, which means consumers are highly price
sensitive for the products and hence bundling might reduce the overall sales
● The utility perceived for each product may differ widely for some consumers, which would create a conflict
in the purchasing decision
● This segment will decrease due to bundling decision

Purchase both A & B:

● Price reduction due to bundling would attract them more than before, since the demand for each product is
inversely proportional to their price
● This segment of customers would increase in size due to bundling decision
 3. Company offers coupons, entitling purchaser of product A to $10 off the price of
product B

3 broad purchase segments:

● Only product A
○ Don’t care about $10 discount coupons offered for product B
● Only product B
○ Don’t care about discount coupons until price of product A is less than that of discount offered on product
B ($10)
● Purchase both A &B
○ Benefits for this purchase segment (A at determined price, B @ 10% discount)
○ Since discount on B is key in selling to this segment, price of A can be increased furthermore for this
segment given bundling principle (to boost bundle revenues).
○ Above point is conditional to product B prices below levels
■ Sum of individual purchase price of A & B >= Discount based bundle price of purchases of A & B
4. Good or bad idea to permit resale of coupons?

● Purchase only A
○ This segment will welcome resale of coupons
● Purchase only B
○ Likely to buy resale coupon,
○ May lead in increased revenue in this segment

● Cross selling of A and B together may decrease, which is the overall obj. of bundling

Therefore, possibly not a good idea.

Thanks!