Definition of Product Bundling
The practice of selling multiple products or services together as a single combined unit.
Explanation of Product Bundling
Product bundling is a marketing strategy where multiple products or services are packaged together and sold as a single unit, often at a discounted price. This approach aims to increase sales, enhance perceived value, and encourage customers to purchase more items. Bundling can take various forms, such as offering complementary products, creating themed packages, or combining popular items with less popular ones. For example, a tech retailer might bundle a laptop with a printer and software, or a beauty brand might offer a skincare set. Product bundling benefits businesses by increasing average order value, clearing out inventory, and attracting price-sensitive customers. It also provides convenience and savings for customers, making it an appealing option. Successful product bundling requires understanding customer preferences, selecting the right products, and pricing the bundle attractively. By effectively implementing product bundling, businesses can boost sales, enhance customer satisfaction, and improve overall profitability.