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The Impact of Price Bundling on the Evaluation of Bundled Products: Does It Matter How You Frame It?

Anjulie Hähnchen () and Bernhard Baumgartner ()
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Anjulie Hähnchen: BSL Transportation Consultants
Bernhard Baumgartner: University of Osnabrueck

Schmalenbach Business Review, 2020, vol. 72, issue 1, No 2, 39-63

Abstract: Abstract Companies often sell their products in a price bundle at a discount. These discounts can be presented to consumers in various ways. Past studies have predominantly focused on the short-term effects of various price reduction frames within bundle offers. The primary purpose of this paper is to investigate the post-promotion effects of presenting a product within differently framed price bundles on consumers’ assessment of this product. A choice-based conjoint design is applied to investigate purchase probability and willingness to pay. The results of the study indicate, among other findings, that the evaluation of a product can deteriorate if this product is presented in a price bundle and that this effect depends on the framing of price discounts in the bundle.

Keywords: Price discount framing; Bundling; Conjoint; Post-promotion effect (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s41464-020-00082-2

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