Bundle pricing is best defined as...

Bundle pricing is a marketing strategy where multiple products or services are offered together at a lower price than if each item were purchased separately. This approach encourages customers to buy more items simultaneously, thus increasing overall sales volume and enhancing perceived value. The rationale behind this pricing strategy is that customers often see it as a good deal, leading to higher customer satisfaction and an incentive to make a purchase that they might not have otherwise considered if forced to buy each product individually at its full price.

In contrast, selling items separately at full price does not create any incentive for bulk purchases and can result in lower sales volume. Charging different prices based on customer demographics relates to price discrimination rather than bundling. Setting a high price for expensive products targets a different market segment, focusing on prestige or exclusivity rather than the overall value proposition provided by bundling items together. Thus, the essence of bundle pricing lies in the attractive pricing structure that promotes the sale of multiple items together, delivering value to both businesses and consumers.