Question

When Claire purchased her new cell phone, she was offered an opportunity to purchase a car charger and a cover together at a reduced price. The cell phone provider was using a ________ strategy.

Answer 1

Answer:

The strategy being used is price bundling

Explanation:

Price bundling is the sale of complimentary goods as a single package at a heavily discounted price.

In addition to price bundling,businesses sometimes try to use a lock-in strategy in order to lure customers to buy other related items.

The lock-in strategy that arises from price bundling can be categorized into -first a situation a low price is sold with the intention of selling a higher price article to customers thereafter and secondly a situation where highly priced is sold with the hope that the customers would other cheap complimentary ones.

The latter was used by the phone provider.

Answer 2

Answer:

Price bundling strategy

Explanation:

Price bundling in business means combining several products or services into a single comprehensive package for an all-inclusive price that is reduced. Now Despite the fact that the items are sold for discounted prices, the benefit of price bundling is that it can increase profits because it promotes the purchase of more than one item. This is the strategy the cell phone provider used when Claire was purchasing her cell phone.