Price bundling

Price bundling involves selling a package of products (goods and or services) at a lower price than if the products were priced and sold separately. Price bundling is closely related to bundling and is a common means to differentiate a company's offerings, regardless of type of product. The assumption in marketing theory that there is perfect information, that is, both parties involved in a transaction share the same information, often is an unrealistic condition. More frequently there are imbalances or non‐perfect conditions allowing for price discrimination. Price discrimination, which can be classified as direct, semi‐direct, and indirect, can be related to bundling. Setting an appropriate price for a bundle requires in‐depth knowledge of customers' needs. If done appropriately, the utility will be optimized. To achieve this there may be a need for a decrease in price of a bundle to compensate the loss in value and need satisfaction if the bundle consists of products with unequal vale or need satisfaction.