Apple is unusual because it has both a legitimate Philippine online store | as well as brick-and-mortar distributors with prices being about the same. In your opinion, what kind of market would shop online and what kind would prefer to shop in their actual stores?

Apple is unusual because it has both a legitimate Philippine online store | as well as brick-and-mortar distributors with prices being about the same. In your opinion, what kind of market would shop online and what kind would prefer to shop in their actual stores?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter14: Indirect Price Discrimination

Section: Chapter Questions

Problem 14.1IP

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Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.

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