- A.Continuously adjusting price based on demand, supply, time, customer, or competitor signals — common in airlines, hotels, ride-sharing.
- B.Price minus variable cost per unit — the dollars each unit contributes to covering fixed cost and profit.
- C.Launching at a deliberately low price to capture share quickly, then raising once the market is established.
- D.Selling multiple products together at a price below the sum of individual prices — captures revenue from customers who would not buy each item alone. ✓
Bundle Pricing is selling multiple products together at a price below the sum of individual prices — captures revenue from customers who would not buy each item alone. The other options describe related but distinct concepts in Pricing — see the deep-dive guide for the full distinction.
How to think about questions like this
Captures customer value from combinations and increases per-transaction revenue. Questions like this test whether you can distinguish Bundle Pricing from neighboring concepts. The most common trap is choosing a closely-related concept that sounds similar but applies in a different context.
When you see a definition question on an exam, do two things: (1) translate the question into your own words, then (2) generate the answer in your own words before reading the options. This avoids the cognitive bias of recognizing a familiar phrase as correct just because it is familiar.