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The key factors in the market that determine the desirability of bundling are the degree of product differentiation, the presence of competitive alternatives, and the vendor's competitive position with respect to the customer. The degree to which products are similar to or distinct from one another has a noticeable impact on bundling. Customers are likely to purchase bundles of products that are less differentiated and more substitutable because of the relative ease with which they can switch from one vendor to another.
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