Chapter 7
Scientific Bundling and Tiering
A new scientific truth does not triumph by convincing its opponents and making them see the light, but rather because its opponents eventually die, and a new generation grows up that is familiar with it.
—MAX PLANCK, C. 1949
Few pricing and product tasks are more important than combining multiple products and services into a single offer—a practice known as bundling. Technology and cost-cutting are creating a world in which many customers now prefer such integrated solutions, and this demand must be met in order for companies to stay competitive. Also, bundling is a way to rapidly create a unique offer and capture the benefits of differentiation.
Few pricing exercises are more context-sensitive than bundling. ...
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