What are the risks of product bundling?
Product bundling can lead to several risks, such as reduced perceived value, customer dissatisfaction, and potential loss of sales for individual products.
Can you explain how reduced perceived value affects sales?
When customers perceive a bundled product as less valuable, they may hesitate to purchase, thinking they are overpaying for items they don't want.
Are there any specific examples of companies facing these risks?
Yes, companies like Microsoft and Adobe have faced backlash when bundling products, leading to customer complaints and reduced sales for standalone items.
How can companies mitigate these risks?
Companies can mitigate risks by ensuring that bundles offer clear value, allowing customers to customize their bundles, and conducting market research.
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