Professional Documents
Culture Documents
Marketing Analytics
Why Bundle?
To get customers to purchase more products than they would have without
bundling.
Automobile Companies
Travel Agents
Microsoft Office
Further Examples
Suppose you own Wonderla Amusement Park and each customer values
the five rides in the park as follows:
Giant Wheel: Rs. 50
Mixer: Rs. 40
Example
Suppose you sell two products and have two potential customers that
value each product as shown: (Cost=0)
Product
Customer 1
Customer 2
Computer
Rs. 20000
Rs. 10000
Monitor
Rs. 10000
Rs. 20000
Mixed Bundling
Seller Offers a different price for each available combination of products.
Customer
Computer
Monitor
Rs. 9000
Rs. 8000
Rs. 11000
Rs. 6000
Rs. 13000
Rs. 4000
Rs. 15000
Rs. 2000
Unit Cost
Rs. 10000
Rs. 3000
Song Data
The worksheet songdata.xlsx gives the values several hundred people
place on 15 downloadable songs.
1) If you charge a single price for all songs, how can you maximize
revenue?
2) If you charge two different prices for songs, how can you maximize
revenue?