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Bundling is an effective strategy to capture market share when faced with competition. Why does this work? Competitors offer the same items at higher prices
Bundling is an effective strategy to capture market share when faced with competition. Why does this work? Competitors offer the same items at higher prices Tangible goods have high marginal costs Intangible goods have high marginal costs People purchase the bundle for key items they want, then don't buy competing items because they already have them By the Central Limit Theorem, willingness to pay gets harder to predict
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