In marketing, what does the term bundling refer to?

Bundling in marketing refers to the strategy of combining several products and selling them as one package or unit. This approach is often used to enhance the value proposition for customers, as they perceive they are receiving more for their money. Bundling can help increase overall sales, as customers may be more likely to purchase a combination of items rather than deciding individually.

For example, a fast-food restaurant might offer a meal deal that includes a burger, fries, and a drink at a lower price than if the items were purchased separately. This not only simplifies the buying process for customers but also encourages them to try products they might not have purchased on their own, leading to greater customer satisfaction and increased revenue for the business.

In contrast, selling products individually does not leverage the perceived value or added benefits of purchasing multiple items together. While creating discounts for bulk purchases and offering seasonal promotions can also be effective marketing strategies, these options do not specifically involve the idea of combining different products into a single offering, which is the essence of bundling.