What is the primary difference between bundling and tie-ins? a. Bundling is typically a one-off...

Question:

What is the primary difference between bundling and tie-ins?

a. Bundling is typically a one-off purchase.

b. Contractual arrangements.

c. Tie-ins are one-off purchases.

d. Bundling is illegal and tie-ins are legal.

Marketing Strategy:

A marketing strategy is defined as the business plan of a company to reach their prospective customers with an objective to increase its sales and market share.

Answer and Explanation:

The correct option is:

c. Tie-ins are one-off purchases.

Tie-ins are illegal arrangements in which a consumer must buy another product in order to buy a product of personal choice. These products are from separate markets and are generally one time purchases.

Bundling refers to the act when companies provide a package of several products at a lower price. These can be a regular feature to provide the product at a lower cost to the customers. For example- Two insurance policies through two separate companies can be bundled together so as to reduce the monthly payments and making the bill payments more convenient.


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What is a Marketing Plan? - Definition & Sample

from Principles of Marketing: Help and Review

Chapter 6 / Lesson 33
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