![]() ![]() ![]() While the results of these studies are somewhat contradictory, the conclusion to be drawn from them is that the framing of economically equivalent bundle discounts has a substantial influence on consumers’ evaluations of bundle offers. 1995 Khan and Dhar 2010 Kwon and Jang 2011 Yadav 1994) have examined other bundle frames, which are not as common as joint- or leader bundling and are not considered in our study. 1999 Janiszewski and Cunha 2004 Mazumdar and Jun 1993 Munger and Grewal 2001 Kaicker et al. ![]() Several researchers (see, e.g., Johnson et al. ( 2008) report that joint bundling results in a higher percentage of bundle choices and a lower percentage of “no purchase” decisions than leader bundling. The term “leader bundling” refers to a bundle in which one of the components is chosen as the price leader, which is offered at a discount when bought in conjunction with other bundled goods (“buy product B together with product A and pay only $Y for product A”). When joint bundling is used, the discount is assigned to the bundle as a whole (“buy products A and B together and pay only $X”). Such a discount can be framed in several ways. Research on bundle discount framing focuses primarily on its short-term effects on consumer evaluations of the bundle offer. The last sections discuss the study’s implications, its limitations and possible directions for future research. Subsequently, the hypotheses are derived and the empirical study and results of the investigation are described. The remainder of this article is structured as follows: First, a brief review of the relevant literature is given. We additionally investigate to what extent the effects spread over to non-promoted brands in the same product category as the brand shown in the bundle offers.Ĭhoice-based conjoint analysis is utilized to identify the choice probability and WTP for a product previously offered within a joint or leader bundle. We differentiate between leader bundles with respect to whether the focal product-based upon which post-promotion effects are studied-or the other product in the bundle is presented as the price leader. Specifically, we consider the effects of assigning an equivalent discount to either the bundle price (joint bundling) or to a particular product, referred to as the “price leader”, within the bundle (leader bundling). The main contribution of this research lies in investigating how these effects are moderated by the framing of the bundle promotion. In particular, we discuss the effects of bundle promotions on post-promotion purchase probability and willingness to pay (WTP) for the bundled products. The aim of the present work is to investigate the post-promotion effects of bundle promotions. Products offered free of charge with the purchase of another product represent a related research topic that will be discussed in greater detail below. However, little attention has been paid to the post-promotion effects of discounts on assessments of bundle components. 2008 Harris and Blair 2012 Janiszewski and Cunha 2004 Khan and Dhar 2010). ![]() 1998).Ī number of studies investigate the short-term effects of discounts in the bundling context (e.g., Gilbride et al. Moreover, consumers may delay their purchases of such products in anticipation of future deals (Mela et al. 1997), and reduced brand loyalty (e.g., Dodson et al. 2007 Kalwani and Yim 1992), increased consumer price sensitivity (e.g., Mela et al. 1995 Diamond and Campbell 1989), lower future price expectations (e.g., DelVecchio et al. 2010 Raghubir and Corfman 1999), a lower reference price (e.g., Blattberg et al. For stand-alone products, previous research reveals that promoted products exhibit lower perceived quality (Nusair et al. However, in addition to these positive short-term effects, promotions might have negative long-term effects, which reduce post-promotion choice. Research conducted in bundling and non-bundling contexts shows that promotions generally enhance short-term purchases (Foubert and Gijsbrechts 2007 Blattberg and Neslin 1989 Blattberg et al. Bundling is therefore widely used as a promotion tool. Estelami ( 1999) finds that, on average, a consumer can save approximately 8% by buying a bundle consisting of complementary products. Price bundling is so widespread that consumers may even infer savings when no discount information is presented for the bundle (Heeler et al. The term “price bundling” refers to the popular approach of offering a discount on the bundle components or the bundle as a whole (Stremersch and Tellis 2002). Well-known examples are body lotion and perfume or meal deals in fast food restaurants. Bundling, the joint selling of two or more products in a package, is a common practice in marketing. ![]()
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