Does size matter?: disentangling consumers' bundling preferences

Manoj K. Agarwal, Ruud T. Frambach and Stefan Stremersch
Additional contact information
Manoj K. Agarwal: Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics

No 33, Serie Research Memoranda from VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics

Abstract: Previous marketing literature has focused to a large extent on the effect of bundle characteristics on a consumer’s decision to buy a (fixed) bundle in a non-competitive setting. This study extends this narrow focus in four major ways. First, the authors address bundles that are customizable. Second, they distinguish between a consumer’s decision of whether to bundle (bundle choice) and the decision of how many goods or services to include in a bundle (bundle size). Third, they extend the focus on bundle characteristics towards the impact of consumer and supplier characteristics on both bundle choice and bundle size. Fourth, they do so in a competitive context. They find that bundle, consumer and supplier characteristics differentially influence bundle choice and bundle size decisions. For instance, consumer socio-demographics were found to significantly affect the decision to obtain a bundle, but had no significant effect on the preferred size of the bundle. Further it was found that heavy users prefer to bundle fewer services compared to light users. This study has important managerial implications towards a successful bundling strategy. Strategies to encourage consumers to bundle should focus on different segments than strategies to encourage consumers to buy larger bundles.

JEL-codes: M31 (search for similar items in EconPapers)
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://degree.ubvu.vu.nl/repec/vua/wpaper/pdf/20000033.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vua:wpaper:2000-33

Access Statistics for this paper

More papers in Serie Research Memoranda from VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics Contact information at EDIRC.
Bibliographic data for series maintained by R. Dam ().