We as humans love to save money, how much we succeeded at it is a different story altogether, that is why we often see huge crowds standing in lines out of stores whenever a heavy discount sale is going on. It is human nature that they pounce on opportunities in which they feel that is something extra to be gained, add a time limit on that and people will go crazy. This is also the reason why masses rush to Black Friday, Christmas, and Thanksgiving sales because events like these do not only offer cost savings but they are available for a very limited time. The fear of missing out is way prevalent in the human psyche, and marketers study these consumer patterns constantly to boost sales invoking certain trigger points of consumers.

The connection between Discounts and Consumer Patterns

All this sounds a bit absurd but scientific studies have also proven that when people wait for such sales and when they get their desired product from a horde of people that are literally fighting for the same thing, it invokes a sense of achievement. This is the natural reward system of our human brain that gets activated when we buy things that we like, and this response is immensely amplified when a certain kind of discount or special deal is associated with it. Our brain releases dopamine, the same chemical which is released when we eat something that we like or when we are in love in general, basically, it is the trigger of happiness and uplifting mood. This same chemical is also released when you get something out of a deal or a sale giving a sense of pride and achievement. It might sound funny that you feel rewarded even though you’re not winning anything and you’re actually paying for it, but that’s how our brains work.

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The Science Behind Bundling

Taking into account this consumer psyche of discounts and rewards, businesses have come up with a lot of techniques to boost sales and drive out more products, and one such tactic is bundling up the service. These bundles are offered in many names like packages, deals, sets, combo, and many other terms are used but the underlying fundamentals of marketing remain the same. This is usually done in service-oriented businesses, however, we do see examples of this in the food business as well like McDonald’s, KFC, and Burger King, which add fries and drinks along with their burgers to make a combo or meal. The concept of bundling is to offer different products in a combination with reduced pricing in contrast to what they cost separately. This technique is mostly employed by ISPs who bundle their different services for a slightly lesser price.

Internet service providers mostly offer additional services like cable TV and home phone among others, the concept of bundling is mostly used when a service provider often bundles all these services in a single package and reduces the prices of all three services in a bundle as compared to purchasing them separately. This strategy not only drives their additional services to more consumers increasing the user base but also helps in creating a brand value through the expansion of services. On the other end, customers get discounted prices, as an example, a comparison of Cox internet plans shows that the prices are somewhat reduced when buying in a bundle instead of choosing ala carte services. In the end, this strategy is a win-win situation for both consumers and companies alike. Apart from all this, there are a few more advantages regarding bundles that we will discuss further on.  

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Why Bundle Services?

Bundling is a great way to get different services, it is especially favorable to get these bundles from the brands you trust. With the current recession in the market and low buying power, people might not go towards bundling but this is something that can help them save in the long run if done right. Due to this, we are explaining some benefits customers can achieve through bundling

All Expenses on One Bill

This is an advantage that most people tend to ignore when considering bundling up the services, usually, there is a lot of hassle at the start of the month since different bills start piling up for different services and amounts. Usually what happens is that with so much to take care of people forget the due dates of these bills which results in a late fee penalty and in some cases complete service disconnection. With bundles, there is usually a single bill so that users can conveniently pay for different services together without any hassle.


Now coming to the main benefit of bundling, the price. The answer to this question is rather complicated as bundling saves you some money but not in the way a regular consumer thinks. Yes, the prices of service drop when bundled instead of when purchased as a standalone product. But the real savings come in associated costs, usually in the case of internet providers many other chargers are associated with the service like installation charges and taxes. This is where a bundle actually saves you money where the installation charges of a standalone service and a bundle remains the same so a user can get all services included in the bundled installed on a single price instead of paying extra whenever adding services. On the other hand taxes and fees are also reduced in bundled services in contrast to paying them additionally on each service separately, this is how a bundle saves you money.

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We have already established that bundling has some key advantages apart from just being a regular marketing gimmick bundling can actually help consumers save some bucks. Although this approach might not suit everyone, however, if you’re interested in getting services and all those services can be achieved in a bundle we would recommend that definitely go for it. But make sure you get bundles from reputable companies especially for services like the internet and TV so that you don’t get stuck with a bad service provider.

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