The effect of incentives on customer evaluations of service bundles

Melinda L. Andrews, Ray L. Benedicktus and Michael K. Brady

Journal of Business Research, 2010, vol. 63, issue 1, 71-76

Abstract: Effects of service bundle incentives on perceived value, search intentions, and switching intentions are assessed in two independent studies. The first study demonstrates that service bundling influences switching and search intentions through perceived value. Results related to bundle incentives support the salience of the convenience associated with consolidating charges onto one bill. Further analysis reveals that explicit valuation of savings creates higher perceived value than convenience alone; however, search and switching intentions are unaffected by incentives or valuation thereof beyond the convenience effect. A second study replicates key parts of these results. Research and practical implications are discussed.

Keywords: Service; Bundling; Value; Search; Switching; Incentives (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:63:y:2010:i:1:p:71-76

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