Bundling, also called price bundling, is the combined offer of at least two products or services at a single price.
Different products / independent partial services are combined into a bundle and sold as a combined product / total service. In general, the all-in bundled price is lower than if the individual components of the bundle were sold separately. In practice, bundling is widely used:
- Online providers such as Amazon combine several products into a complete package (e.g. Amazon Alexa and Smart Home Lamp from Phillips Hue).
- Fast food suppliers such as McDonalds offer meals where the meal price is cheaper than the total individual prices of the included items.
- Many cinema operators offer packages that include popcorn and drinks in addition to the admission ticket.
Companies can pursue different objectives with price bundling: