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Bundling of Products and Services

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Just being curious, but are there any cases where bundling of products or services may not be such a good idea?

Please include reference in the response.

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Solution Summary

Bundling of products and services are examined. The reason for failure of bundling is examined.

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Bundling of Products and Services

Bundling of products and services is a combination of two or more separate products and services with a single price (Rouskas, 2009). It creates differentiation, value for the customers. Bundling minimize the organization's offering costs. It increases efficiencies and reduces marketing and distribution costs for the businesses. It provides cost-effective services or products to customers. The most well-known example is the bundled computer packages with a monitor, mouse, keyboard and preloaded software in a single price (Rouskas, 2009).

Reason for Failure of Bundling

The bundling of products and services is not always successful or beneficial for the organization as there are several reasons for the failure of bundling products or services. These are discussed below:

Control of quality and technology: After the bundling of product and service, if organizations not focus on quality or new technology then it may not be beneficial for the business. ...

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