A method and system for customer-choice-based bundling of product options collects data from previous orders about customer component choices, computes a pairwise distance between any pair of components that capture how much the probability of a choice pair P(a.b) deviates from the expected probability under the null hypothesis of independence P(a)*P(b), and clusters the components. The methodology can be implemented as instructions implemented in a computer readable medium. In this way, the need for a method to permit bundles of product options to be configured through the use of business processes reflecting choices based on the preferences of customers rather than the preferences of product designers is fulfilled.