Marketing Quiz
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PRICING STRATEGY
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A cafe notices that many customers purchase a coffee and a pastry together. Currently, coffee is $4 and a pastry is $5. To increase sales, management considers two options:
1. Create a 'combo' of one coffee and one pastry for $7 (Bundling).
2. Introduce a larger, 'premium' coffee for $6, hoping to upsell customers (Versioning).
Sales data indicates that customers' willingness to pay for coffee and pastries is strongly positively correlated.
Given the positive demand correlation, what is the most likely outcome of implementing the bundling tactic?
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