DECA Sports and Entertainment Marketing Practice Exam

What pricing strategy combines several products into a single package for a lower price?

1. Discount Pricing

2. Competitive Pricing

3. Bundle Pricing

4. Premium Pricing

The correct answer is: Bundle Pricing

Bundle pricing is a strategy where multiple products are combined and sold together at a lower price than if each product were purchased individually. This approach offers benefits to both the seller and the buyer. For sellers, it can help increase sales volume and clear out inventory more quickly, as customers may perceive they are getting a better deal. For buyers, bundle pricing creates perceived value, making them more likely to purchase, as they believe they are saving money by buying in bulk or getting more for their money. In contrast, discount pricing involves reducing the price of a product temporarily to increase sales. Competitive pricing sets prices based on what competitors are charging, while premium pricing involves setting higher prices for products to reflect their exclusivity or high quality. Each of those strategies can provide specific benefits, but they do not focus on the package deal aspect that bundle pricing does. This makes bundle pricing distinct in its ability to combine value and convenience for consumers.