What is the primary objective of price bundling?

The primary objective of price bundling is to sell multiple products for a single, lower price. This strategy is designed to encourage customers to purchase more items than they might have initially planned, thereby increasing overall sales volume. By offering a bundle, companies can provide perceived value to customers, making them feel they are getting a better deal compared to buying items individually. This tactic not only enhances customer satisfaction but also helps businesses move excess inventory and introduce customers to new products.

Moreover, using price bundling can lead to increased average transaction value, as customers may be more inclined to purchase bundled products they perceive as a better deal, thereby boosting revenue for the retailer. It capitalizes on the principle of perceived savings, which can effectively drive consumer behavior.

The other options focus on different pricing strategies that do not encapsulate the essence of bundling. For instance, selling one product at a premium price involves charging a higher price for perceived exclusivity or high quality, which diverges from the idea of combining products for a lower total price. Charging different prices for varied customer segments relates to pricing discrimination rather than bundling of products, while offering products exclusively in bulk does not align with the strategy of creating perceived value through a bundled discount.