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Customers don't weigh these numbers together. They average them. Therefore, low-priced objects inevitably depreciate the value of more expensive things.
Definition: First and foremost, let's define product bundling so that we're all on the same page. In a word, product bundling is a marketing strategy that involves grouping numerous items together and selling them as a single unit for a single price. It's a marketing approach that encourages people to buy more items and, as a result, spend more money.
One popular pricing tactic is to bundle items that are together. For example, if you're selling a book and online course together as part of a bundled offer, you could price the book at $50 and the online course at $25. This would give the customer the impression that they are getting a deal on the online course, when in reality they are paying full price for both items.
Bundling can be a great way to increase sales and profits, but it's important to be aware of how it can impact your customers' perception of value.
If you're selling a $500 home gym you shouldn't bundle it with a $5 fitness DVD. Customers don't sum these values together. They rather average them. This means that cheap items detract the value of the expensive items.
One morning you wake up, first things first. You're probably are going to take a shower and grap some coffee. But shoot, you now see your coffee maker isn't working anymore. You're going online to quickly search for a new machine so you'll be able to have coffee in the morning the next day.
You see a nice coffee maker, it's $249,99 which is some money but you're prepared to invest it. You see it's bundled with freshly ground coffee, which costs $3,29. Because of the bundle with the freshly ground coffee our mind detract the value of the expensive item, making us doubt the decision.
That's why some you don't see this bundle often. They rather give you some free coffe to get started with your new coffee maker.
Be careful on how to apply this pricing tactic for bundling products. Make sure the 'cheap' item don't detract the value of the expensive item. Always make sure you experiment with these bundles to see what works best for your users.
Are you curious about how to apply this bias in experimentation? We've got that information available for you!
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