Sunday, February 14, 2010

Product bundle pricing

Product bundle pricing is defined as combining several products and offering the bundle at a reduced price. (Kotler p.274) For most of the telecommunications service companies, they use product bundle pricing by combining several of their products and offer the bundle at a reduced price.
For example, T-mobile offers lower price or even free cellphones if signing up a 2 year contract of their telecommunication service. Taking its HTC Mytouch 3G as an example, it is sold at instant discount at $149.99 in any T-mobile stores with 2 years contract required whereas it costs around $399.99 at the current market. Consumers can get a low combined price with this cellphone but they have to be bound with 2 year contract and a data service which is required in order to access this phone’s Web functionality and features (Internet access and e-mail) which costs $59.99 montly with T-mobile.
On the other hand, this HTC Mytouch 3G is only available at T-mobile in the video. As a result, people who want this phone with telecommunication service can save $$$ by purchasing at T-mobile with their product bundle pricing.

TunChun (Crystal) Pan, Section G

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