Five Reasons To Not Unbundle

The study is all about unbundled pricing but it would not be complete if it did not discuss the reasons for not practicing unbundled pricing. These are some of the top reasons, some of which will be discussed in the study:

1. Exposes the product cost structure to customers and competitors. This may involuntarily lead the marketer to do cost-based pricing and not value based pricing.
   
2. When the prices reflect the cost to produce the components, it leads to product commoditization and brand erosion.
3. When individual components are priced and distributed separately, the brand focus shifts from the top-level brand to the component brands. For example, when CBS network decides to price its CSI series separately, then latter brand takes precedence over the CBS brand.
4. The accounting and transaction cost may be very high or exceed the benefits of unbundling.
5. Unbundling can tie the marketer to the current product mix and make them not see the top-level product innovations that can deliver higher value than the current product mix.