According to the Cahner’s In-Stat Group, the number of worldwide wireless phone

Question

According to the Cahner’s In-Stat Group, the number of worldwide wireless phone subscribers will soon reach the 1 billion mark. In the United States alone, the number of wireless subscribers is projected to grow by almost 17 million subscribers per year for the next five years. Contributing to the extensive growth are lower prices, larger geographic coverage, prepaid services, and Internet enabled phones. While the actual cost of a basic wireless phone is about $150, most wireless carriers offer their customers a “free” phone with a one-year wireless service agreement.

This pricing strategy is consistent with which of the following:

Instructions:  You may select more than one answer. Click the box with a check mark for the correct answers and click twice to empty the box for the wrong answers. You must click to select or deselect each option in order to receive full credit.

Explanation / Answer

This price strategy may be called bundling where the wireless phhone is bundles with the cellular phone. The phone needs to be used with that wireless service for one whole year. When one product is sold as complimentary with another and the customer will have to buy both this strategy is bundling.

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