Plastic Surgery Bundled With Travel

¶ … plastic surgery bundled with travel in South Africa. Bundled services are becoming increasingly common in American marketing because they are effective tools, and because many consumers believe they are getting something "extra" or "free" with their bundled packages.

What products or services have been bundled in the U.S. so that when one buys one product or service, another desired product or service is also provided?

Numerous products and services in America are now bundled with other products and services. Two examples are the DISH Network, which bundled a Personal Video Recorder (PVR) with certain monthly services. The consumer can purchase the PVR outright, or they can pay a nominal monthly fee to continue service. The PVR has attracted many subscribers to DISH that many not have subscribed to a satellite service before. Most computer companies bundle Microsoft Windows software and other programs that work in Windows with their computers. Cable television companies often offer bundles of television programming and high-speed Internet access, and telephone companies bundle telephone service and Internet access, too (Anderson, 1997, p. 205). In addition, even staid enterprises such as banks offer bundled services to their depositors. They will bundle checking accounts with debit cards, credit cards, lines of credit, bill payment services, and other incentives to keep depositors using a variety of services (Sherwood, 1994, p. 11). Consumers may not always recognize they are purchasing a bundle of services or products, but the practice is becoming increasingly common in almost all areas of marketing. Bundling draws in more customers, but it can give customers more of what they want, too, and that keeps many customers coming back for more goods and services.

2. Is this type of pricing effective over the long-term or is it only useful as a sales promotional device?

Often, this kind of pricing is quite useful as a sales promotional device, but is can also be effective in long-term sales and promotion. For example, when PCs are bundled with Windows software, the user almost always purchases additional programs that run in Windows, thereby continuing the brand reliance on Microsoft products and compatible products. Most DISH subscribers will keep their DISH account because they enjoy the extreme convenience of the PVR bundled with their service. If the bundled service or item is a one-time promotional item, such as a phone card, the pricing may not be as effective. It simply depends if the service or item is desirable enough to the consumer to keep them coming back for more. However, in some cases, bundling can be seen as a cheapening of the product or service, and may actually keep consumers away from products that seem "too good to be true." A good example of this may be some of the "As Seen on Television" products that come bundled with so many other items that the offer seems to go on forever and the quality of all the products are called into questions because the prices are so cheap. Bundling is quite useful in sales and promotion, but just as with many service, too much of it can turn out to be too much of a good thing.

3. The article speaks of pricing for plastic surgery much reduced from in the U.S. Can you think of any disadvantages to pricing much lower than what would be perceived as a "standard" price?

Absolutely, there are many disadvantages to pricing goods and services much lower than what is seen as a "standard" price. For some consumers, a price that seems "too good to be true" may warn them away from the product or service. It cheapens the product, and makes consumers worry that they are not getting the same quality article they might if they paid a higher price. Many professionals have the same problem with bundling professional services such as plastic surgery with things like vacations. The article states, "Some plastic surgeons are skeptical of consulting with patients for such important surgery from a distance. 'Sometimes clients come here and having paid for traveling and holiday, a doctor might feel obliged to go through with the operation even if the person is not suited,' says Tom Ford of the Association for Plastic and Reconstructive Surgeons in Southern Africa" (Article). This could be dangerous or even deadly, and so, the practice could end up being far more costly than just dollars and cents. In addition, many consumers do not trust any price that is lower than the market, and they will not even investigate the product or service to find out if it is truly a bargain or a problem. Therefore, the doctors who participate in this program may be turning away some of their most profitable customers simply by not charging the going rate for their services.

4. Would a better strategy be to forget the safari and to charge higher than prices in the U.S. And spend heavily to promote South Africa's exceptional medical and surgical facilities? Why or why not?