Bundling products and service on influencer channels

Lei Xie, Guangtao Guo and Jiao Chen

Journal of Retailing and Consumer Services, 2024, vol. 79, issue C

Abstract: This study investigates the optimal service pricing strategies for manufacturers within the burgeoning field of influencer live-streaming marketing. By examining a dynamic where manufacturers collaborate with social media influencers, the research evaluates the efficacy of bundling products and services versus separate pricing under varying conditions. The study uncovers that the gap between the two service pricing models will increase as the service cost increases. Moreover, the lower the service cost, the more obvious the relative advantage of the bundling model. That is, bundling is most beneficial when service costs are low, whereas separate pricing becomes advantageous as service costs escalate. In addition, the decrease in the rate of product defects can lead to an increase in the relative advantage of the bundling model. Intriguingly, the optimal promotional approach for influencers shifts in response to these pricing strategies, favoring a combined product-service promotion when services are priced separately. The study further reveals a direct correlation between product defect rates and profitability, especially under separate pricing scenarios. These insights offer valuable guidance for manufacturers and influencers in strategizing their offerings and promotions in the digital marketplace.

Keywords: Influencer marketing channel; Products and service bundle; Pricing; Channel strategies (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:79:y:2024:i:c:s0969698924001292

DOI: 10.1016/j.jretconser.2024.103833

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