Page 83 - EBOOK DPM 10013 POM-FINAL 25.10.2021
P. 83

Producing  goods  and  services
                                 By-product pricing                 frequently results in the production

                                                                    of goods and services.

                                                                    If  the  by-products  have  no  value
                                                                    and getting rid of them is expensive,

                                                                    the  primary  product's  pricing  will
                                                                    be affected.

                                                                    The corporation uses by-product pricing to

                                                                    find  a  market  for  these  by  products  in
                                                                    order to balance the expenses of disposal

                                                                    and  make  the  primary  product's  price
                                                                    more competitive.





                              Product bundle pricing                Reduces the cost of many products
                                                                    by combining them.

                                                                    Fast-food  outlets,  for  example,

                                                                    charge a combo price for a burger,
                                                                    fries, and soft drink.


                                                                    Price bundling can help consumers
                                                                    buy things they might not have

                                                                    bought otherwise, but the total

                                                                    price must be low enough to entice
                                                                    them to buy the bundle.
























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