Product and service bundling decisions and their effects on purchase intention

Examines the effects of four factors (the bundle: pure or mixed, the price discount, the functional complementarity of bundle components, and the number of bundle components) on consumers' intentions to purchase product and service bundles. The findings were relatively consistent across product...

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Bibliographic Details
Published in:Pricing strategy & practice 1997-09, Vol.5 (3), p.99-107
Main Authors: Herrmann, Andreas, Huber, Frank, Higie Coulter, Robin
Format: Article
Language:English
Subjects:
Aluminum
Automobile industry
Automobiles
Automotive industry
Automotive repair services
Brand loyalty
Bundling
Consumer behavior
Consumers
Discounts
Factorial experiments
Germany
Large companies
Manufacturing
Prices
Pricing
Product choice
Product design
Purchasing
Studies
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Summary:Examines the effects of four factors (the bundle: pure or mixed, the price discount, the functional complementarity of bundle components, and the number of bundle components) on consumers' intentions to purchase product and service bundles. The findings were relatively consistent across product (automobile) and service (automotive service) contexts, and illustrate that pure bundles are preferred to mixed bundles, and a greater price discount is preferred to a lesser one. The results also indicate that five component bundles generate greater purchase intention than either three or seven component bundles, and that "very related" bundle components result in greater purchase intention than either moderately or not related components. Additionally, several interactions are present.
ISSN:0968-4905
1758-6968
DOI:10.1108/09684909710171873