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Article
Publication date: 2 May 2017

Uta Herbst, Birte Kemmerling and Margaret Ann Neale

While industrial marketers have long bundled their products and services to sell them as packages, to what extent should negotiators also rely on packaging their offers? Clearly…

Abstract

Purpose

While industrial marketers have long bundled their products and services to sell them as packages, to what extent should negotiators also rely on packaging their offers? Clearly, negotiating at a package level can tax the cognitive capacity of the involved parties at some point. Therefore, this study aims to analyze the impact of the number and type of issues that should be negotiated simultaneously to leverage the package strategy efficiently and effectively in multi-issue buyer-seller negotiations.

Design/methodology/approach

The authors conducted and analyzed negotiation simulations with 676 students from 2 public universities.

Findings

The authors’ results suggest that negotiating three out of six issues simultaneously is the least efficient but most effective strategy in multi-issue buyer-seller negotiations. Moreover, they found that bundling distributive and integrative issues is more efficient and effective than only bundling distributive or integrative negotiation issues in a package offer.

Originality/value

Past research has examined the impact of negotiating a package as compared to each issue separately; however, little empirical attention has been directed toward understanding how to apply a package strategy in complex multi-issue negotiations.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 4
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 31 October 2008

Raj Arora

The purpose of this paper is to investigate the effectiveness of price bundling and message framing on attitudes, intentions, and beliefs about attributes of teeth whitening…

4544

Abstract

Purpose

The purpose of this paper is to investigate the effectiveness of price bundling and message framing on attitudes, intentions, and beliefs about attributes of teeth whitening products. Although each of these variables, message framing and price bundling, has been explored individually, few attempts have been made to investigate them jointly. This study is based on a full factorial design that allows for testing of interaction effects. Second, the market for whitening products is maturing, resulting in a target market that is gaining knowledge about these products. Thus, we use knowledge as a covariate in the above investigation to determine if the communication strategy should be changed as the product moves from introduction to maturity.

Design/methodology/approach

The study is based on a 2 × 2 factorial design with price bundling (bundle price – individual price) and framing (positive – negative). The setting for the study is a hypothetical brand name of teeth whitening products.

Findings

The results reveal a mixed picture with respect to effectiveness of pricing and framing on attitudes and intentions. The effect of price bundling is not significant on attitudes; it is significant on intentions. Framing has a greater impact on intentions than on attitudes. Nevertheless, the interaction effects are significant on both attitudes as well as intentions. Finally, the impact of knowledge as a covariate is significant.

Research limitations/implications

Caution is advised in extrapolating the results beyond the issues investigated in the study.

Practical implications

The findings help marketers in formulating effective marketing strategy using both price bundling and message framing strategies.

Originality/value

Although price bundling and message framing have been explored in marketing studies, the research is lacking on the combined effects of these two important variables. The findings show a significant interaction effect of pricing and framing on changing attitudes and intentions. Prior research recommends using negative framing. The present research shows that for bundle products, a positive framing approach is desirable.

Details

Journal of Product & Brand Management, vol. 17 no. 7
Type: Research Article
ISSN: 1061-0421

Keywords

Open Access
Article
Publication date: 21 March 2024

Xiaogang Cao, Cuiwei Zhang, Jie Liu, Hui Wen and Bowei Cao

The purpose of this article is based on the unit patent license fee model in the closed-loop supply chain.

Abstract

Purpose

The purpose of this article is based on the unit patent license fee model in the closed-loop supply chain.

Design/methodology/approach

This paper analyzes the impact of the bundling strategy of the retailer selling new products and remanufactured products on the closed-loop supply chain under the condition that the original manufacturer produces new products and the remanufacturer produces remanufacturing products.

Findings

The results show that alternative products can be bundled, and in many cases, the bundling of remanufactured products and new products is better than selling alone.

Originality/value

If the retailer chooses bundling, for the remanufacturer, when certain conditions are met, the benefits of bundling are greater than the separate sales at that time; for the original manufacturer, when the recycling price sensitivity coefficient is high, the bundling is better than separate sales.

Details

Modern Supply Chain Research and Applications, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2631-3871

Keywords

Book part
Publication date: 8 August 2022

Xingping Zhang, Feng Yang, Yaqin Hu and Zhimin Huang

For two-sided platforms, the utility of users on one side of the platform depends in part on the number of users on the other side of the platform, a phenomenon called indirect…

Abstract

For two-sided platforms, the utility of users on one side of the platform depends in part on the number of users on the other side of the platform, a phenomenon called indirect network externalities. With the rapid development of two-sided platform and the popularity of platform membership, more and more two-sided platforms have launched joint membership through horizontal cooperation in order to take advantage of indirect network externalities to increase platform profits.

Our study explores the optimal bundling strategy for platform memberships under horizontal cooperation considering indirect network externalities. The main purpose of our study is to obtain the optimal pricing under different strategies (pure component, pure bundling, and mixed bundling) and contrast different strategies under different indirect network externalities.

Results suggest that the platform's optimal pricing for consumers and sellers depends on the indirect network externalities. Interestingly, the higher the indirect network externalities from consumers, the higher the price of the platform charges to sellers, and the platform might even subsidize sellers. Besides, when there are equal proportions of different types of consumers in the market, indirect network externalities that are too high, too low, or heavily lopsided may discourage the platforms from bundling their memberships. When the composition of consumers changes, the optimal strategy will also change. Our results can be employed in practical applications of bundling, which can help the platform increase profits.

Details

Applications of Management Science
Type: Book
ISBN: 978-1-80071-552-3

Keywords

Article
Publication date: 1 July 2001

Gillian Naylor and Kimberly E. Frank

Examines the importance of delivering an all‐inclusive price bundle to consumers. A longitudinal study is conducted to test the role of expectations of both price and other costs…

7632

Abstract

Examines the importance of delivering an all‐inclusive price bundle to consumers. A longitudinal study is conducted to test the role of expectations of both price and other costs (e.g. hassle, time spent) associated with a price bundle on perceptions of value across first‐time and repeat guests at an upscale resort/spa. The findings confirm that consumers consider more than just benefits (quality) and price when assessing value. Specifically, finds that providing an all‐inclusive price package, even if actual monetary outlay is higher, will significantly increase perceptions of value for first‐time consumers.

Details

Journal of Services Marketing, vol. 15 no. 4
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 24 February 2012

Edwin Love

This research seeks to investigate the relationship between product bundling strategies and brand value.

1025

Abstract

Purpose

This research seeks to investigate the relationship between product bundling strategies and brand value.

Design/methodology/approach

Three studies were conducted, two using student subject pools and another using data collected from online auctions. The impacts of brand and bundling strategy stimuli on the dependent variables product choice and price paid were measured.

Findings

Bundles offered by low‐tier brands are more attractive when they are offered in a combined price format than in a partitioned price format. Bundles offered by high‐tier brands are more attractive when they are offered in a partitioned price format than in a combined price format.

Research limitations/implications

The cost of bundle elements to the firm, which may influence consumer reference prices, is not considered in this research. Also, the impacts of bundle pricing strategies are evaluated on the bundles only; the influence of a given strategy on a product portfolio is left for future research.

Practical implications

Firms should consider the status of its brand within its product category before deciding on a bundle pricing strategy.

Originality/value

This research has important implications regarding the pricing of product bundles. It also provides a new perspective on how consumers evaluate product bundles

Details

Journal of Product & Brand Management, vol. 21 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 16 March 2015

Arvind Sahay, Sumitava Mukherjee and Prem Prakash Dewani

The purpose of this paper is to study how consumers process price frames of product bundles (product plus surcharge) and discount offers to weigh contentious positions between the…

Abstract

Purpose

The purpose of this paper is to study how consumers process price frames of product bundles (product plus surcharge) and discount offers to weigh contentious positions between the weighted-additive and the reference-dependent models. Further, some research suggests bundling, while others suggest partitioning to be a more effective pricing strategy. This research evaluated the relative influences of different price frames to examine which model is supported and what are the boundary conditions for price framing.

Design/methodology/approach

Two online studies were conducted on Indian adults who had prior experiences of online purchases. They were asked to judge attractiveness of bundles (product along with shipping surcharge). Discounts were shown on the product, the surcharge or on the overall bundle either as partitioned prices or as a bundle.

Findings

Across two studies on low- and high-priced products, discounts on shipping surcharge increased attractiveness of the bundle compared to a similar discount on the product or on the overall bundle, supporting the reference-dependent model. Further, for a low-priced product, bundling increased attractiveness, while for a high-priced product, partitioning was more attractive.

Research limitations/implications

More research is needed to examine whether these results translate to other kinds of products, surcharges or discount promotions and in different populations.

Originality/value

This research makes important contributions to theoretical and practical aspects of bundling and partitioned pricing research. It also adds much needed data about evaluation of product bundles with shipping surcharges among Indian customers.

Details

Journal of Indian Business Research, vol. 7 no. 1
Type: Research Article
ISSN: 1755-4195

Keywords

Article
Publication date: 21 August 2017

Chatura Ranaweera and Heikki Karjaluoto

The purpose of this paper is to contribute toward the current limited understanding of service bundles by investigating how purchasers of combined product-service bundles (bundle

1451

Abstract

Purpose

The purpose of this paper is to contribute toward the current limited understanding of service bundles by investigating how purchasers of combined product-service bundles (bundle customers) differ from those purchasing a product and associated service separately (non-bundle customers).

Design/methodology/approach

The hypothesized effects were tested on a representative sample of mobile phone subscribers in Finland, through a multi-group moderated analysis using variance-based structural equation modeling.

Findings

While functional value had a stronger effect on attitude for bundle customers, price value is a stronger determinant of attitude for non-bundle customers. There was no difference between the groups in terms of how attitude determines the word-of-mouth (WOM) intent. The total influence of functional value on positive WOM intent was stronger for bundle customers vs non-bundle customers; in contrast, the total influence of price value on positive WOM was weaker for the bundle customers.

Research limitations/implications

Two interrelated frameworks, prospect theory and mental accounting theory, are used to analyze customer response to service bundles. The results demonstrate that bundles play a powerful role in determining engagement behaviors critical to firms. Purchasing a service bundle vs a non-bundle influences how price value and functional value determine attitude and WOM intent in fundamentally different ways.

Practical implications

In devising communication strategies to maximize positive WOM, managers need to emphasize functional benefits for bundle purchasers and price benefits for non-bundle customers. The results also demonstrate that it is more important for firms to track perceived value, as value and not attitude differentiates WOM generation in the two groups.

Originality/value

This is the first study to demonstrate how bundle and non-bundle customers determine value, and how functional value and price value determine WOM generation and attitude toward service provider in fundamentally different ways. The comparison of the bundle group where the firm acts as the main resource integrator to a non-bundle group where the customer is the main resource integrator in creating value helps demonstrate the need for firms to treat the two groups in distinct ways.

Details

Journal of Service Management, vol. 28 no. 4
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 1 January 2006

Ross D. Petty and Joan Lindsey‐Mullikin

This research seeks to examine the regulation of practices that promote brand interest. Its goal is to develop a comprehensive conceptual framework of such practices.

4417

Abstract

Purpose

This research seeks to examine the regulation of practices that promote brand interest. Its goal is to develop a comprehensive conceptual framework of such practices.

Design/methodology/approach

A comprehensive search of US marketing laws and regulations was conducted to find cases and regulations pertaining to practices that promote consumer interest in a particular brand. These practices were then arranged into categories by their method of influencing consumer behavior.

Findings

The 3Cs approach appears to provide a useful conceptual model for consumer brand managers. This model allows managers to consider the applicable case law and regulations for each type of practice.

Originality/value

The conceptual model developed here is the first of its kind. It provides a useful tool for consumer brand managers who are considering various practices to promote brand interest. It helps brand managers evaluate the legal risks of the various practices they are considering.

Details

Journal of Product & Brand Management, vol. 15 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 November 1999

Antreas D. Athanassopoulos and Nikos S. Labroukos

Examines issues related to the behaviour of corporate customers towards financial services in Greece. Deviates from the customary empirical approaches concerning customer…

3148

Abstract

Examines issues related to the behaviour of corporate customers towards financial services in Greece. Deviates from the customary empirical approaches concerning customer satisfaction and loyalty issues since it is considered that banking, at the corporate level, entails issues that cannot be depicted into customer disconfirmation studies. Proposes a framework of analysis that draws on the assumption that corporate customers select their banking relationship on a product by product case. Furthermore, there is differentiation between the dominant criteria of bank selection with price not exhibiting the expected widespread dominance over other types of selection criteria. The empirical analysis was based on a sample of 468 Greek enterprises drawn from a population of the 2,197 largest and profitable Greek enterprises in Greece. Using methodologies of multidimensional scaling, MANOVA and multivariate discriminant analysis the study has shown that the extent to which individual firms are captured in global banking relationships can be explained.

Details

International Journal of Bank Marketing, vol. 17 no. 6
Type: Research Article
ISSN: 0265-2323

Keywords

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