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TPO 60- Speaking Question 4

Listen to part of a lecture in a business class.

Professor:

So, stores use different strategies to get customers to buy more of their products, and today we are gonna talk about a strategy called product bundling.

Bundling involves combining several products. Physically bundling them together, so they are sold together. And offering the entire set at a price less than customers would pay to buy all the items separately. And stores use bundling to sell more products in a couple of different ways.

One way that stores use bundling is to encourage customers to buy more products than they intended to. When products are bundled together, customers will feel like they are getting more for their money. So they are more likely to purchase the whole bundle even if they just planned to purchase one product.

So for example, let’s say a computer store bundles a computer along with a printer and charges a lower price than people would pay to buy a computer and a printer separately. Well, even if customers were just looking for a computer, they might be led to choose to buy the bundle because they think they are getting a good deal and getting a printer too.

Stores also use bundling to help sell more of their old products that aren’t selling well and make room for new ones. If a product has been sitting around for a long time, they can bundle it along with another product to help sell it. When people buy the whole bundle, the store is able to get the old product off the shelves.

So let’s go back to the computer store. They might have older computer games that people aren’t really buying anymore, so they might try bundling the games with computers, even though people aren’t buying the games on their own. Since they are buying the computers, they might purchase the whole bundle. This would help clear out the old games and make room for new ones.