use bundling or unbundling to change the nature of a product Competing on price has long been a characteristic of commodity marketing and is now becoming increasingly common for brands. Interestingly, most businesses would rather not compete on price and research suggests that it is often unnecessary. Jeff Bezos, CEO of Amazon, suggests that the […]

use bundling or unbundling to change the nature of a product Competing on price has long been a characteristic of commodity marketing and is now becoming increasingly common for brands. Interestingly, most businesses would rather not compete on price and research suggests that it is often unnecessary. Jeff Bezos, CEO of Amazon, suggests that the best way to avoid focusing on price is to understand the customer and to use that understanding to drive brand loyalty.This is the last of 5 thoughts discussing strategies that might be implemented to avoid competing on price.In a 2018 pilot study, an e-commerce business increased its average sale per customer from $160 to $182 by bundling components in a way that made comparisons to competitive products very difficult. In this case, bundling increased both sales and the average sale per customer. Insurance companies and, in particular, health insurers have used bundling, packaged as ‘customer…