What Is Bundling?

Bundling is when companies package several of their products or services together as a single combined unit, often for a lower price than they would charge customers to buy each item separately.

Mixed Bundling vs. Pure Bundling

Bundling usually consists of giving consumers an option to buy a set of items together as a package at a lower price than what they would pay to buy them all individually, in a process known as mixed bundling. However, there also exists an alternative, rarer form of this strategy called pure bundling.

Pure bundling does not give customers the option to buy items separately. An item that consists of several products or services must be bought as one or not at all. Examples include Microsoft’s Office 365 software and television channel plans. In the case of the latter, cable providers often offer packages, meaning customers cannot just pick and choose which individual channels they want to pay for.