The dilemma of mixed bundles: The effects of price, brand, and content preference on music CD bundle choices

Hsiao-Ching Lee, Dung Chun Tsai and Ming-De Wu

Journal of Retailing and Consumer Services, 2011, vol. 18, issue 5, 455-462

Abstract: Most of the studies on bundling have focused on pure bundles; the literature has paid little attention to mixed bundles, in which the bundle item could be bought separately. Our research fills the literature gap by conducting a field study and a computer interactive experimental design. The results show that the prices of the focal item and the tie-in item have asymmetric effects on consumers' purchase intentions in regard to the whole bundle. Specifically, a price discount on the focal item is more effective in enhancing purchase intentions than on the tie-in. Also, a high priced tie-in may result in bundle choice deferral. Finally, when consumers choose the tie-in, content preference is more important than brand preference in CD bundle choices. The findings suggest that CD retailers should offer a high price discount on the focal item rather than on the tie-in, in their pricing and product strategies for bundling promotion.

Keywords: Price framing; Mixed bundle; Price discount; Brand preference; Content preference; Bundle choices (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:18:y:2011:i:5:p:455-462

DOI: 10.1016/j.jretconser.2011.06.010

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