Future Business Leaders of America (FBLA) Marketing Practice Test

What is the practice of combining the price of several related services called?

1. Bundling

2. Marking

3. Packaging

4. Discounting

The correct answer is: Bundling

The practice of combining the price of several related services is referred to as bundling. Bundling allows businesses to offer multiple services together at a single price, which can often provide consumers with added value and convenience. This marketing strategy encourages customers to purchase more, as they may perceive they are receiving a better deal by buying services together rather than individually. For example, a telecommunications company might bundle internet service, cable TV, and phone service for a lower total price than if each were purchased separately. This approach can also simplify the purchasing decision for consumers and enhance customer satisfaction by offering a comprehensive solution to their needs. In contrast, marking refers to the process of setting prices for goods or services, packaging usually pertains to the way a product is presented to attract customers, and discounting involves reducing the price of a single item or service to stimulate sales, rather than combining multiple offerings.