Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Many packages far down on the wish list

06.12.2011
This year’s Christmas shopping is expected to set new records, and a common sales trick is to combine and sell goods and services in bundles, as in ‘buy three pay for two.’ Somewhat surprisingly, we often find these package deals less attractive than separate goods, according to new research from Umeå University in Sweden.

The most important sales period for stores has started, and in different stores we encounter apparently good deals involving the purchase of two or more items together. Such package deals might consist of everything from ‘one item free’ to more complicated combinations, such as all-inclusive trips or computer packages with hard- and software plus warranties. In a new dissertation, Erika Knutsson, Umeå School of Business, has studied in what way the relationship between the products in the bundle affects how attractive we think the deal is.

In five studies she asked nearly 800 consumers and students to determine a price for individual goods and services, and various combinations of the same products. She was surprised to see the low values placed on most bundles.

“Package deals are seldom regarded as more attractive than separate products, not even if the combination is offered at a considerable discount,” says Erika Knutsson.

Her results show that it is only bundles with closely related products that can be judges as being just as attractive individual articles. Even though she had expected that the relationship between the goods in the package would affect the estimated value, she was somewhat surprised by how important this was.

“The more the bundled items are seen as belonging together, the more highly we value the combination,” says Erika Knutsson.

“We’re even more satisfied with complementary bundles even if we only make use of one of the goods, compared with entirely unrelated combinations.”

What, then, is meant by “complementary bundles”? According to Erika Knutsson they can involve items that go together functionally, like TVs and DVD players, or goods that are consumed at the same time, like popcorn and movie tickets. It can also be a matter of products with a similar image, like bundling a round of miniature golf with a pass for a swimming facility.

“What attractive combinations have in common is that customers can quickly and readily see what added value multiple products create.”

Erika Knutsson maintains that this research is not only useful for companies to increase their profit margins.

“More attractive bundled deals can also mean that more customers benefit from various offers.”

Dissertation: Bundling for consumers? Understanding complementarity and its effect on consumers’ preferences and satisfaction.

Contact information: Erika Knutsson, School of Business, Umeå University, Mobile: +46 (0)73-846 15 19 or e-mail: erika.knutsson@usbe.umu.se, erika_knutsson@hotmail.com

Ingemar Björklund | idw
Further information:
http://www.vr.se

Further reports about: Business Vision Christmas shopping package deals

More articles from Communications Media:

nachricht New Technologies for A/V Analysis and Search
13.04.2017 | Fraunhofer-Institut für Digitale Medientechnologie IDMT

nachricht On patrol in social networks
25.01.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

All articles from Communications Media >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Abrupt motion sharpens x-ray pulses

Spectrally narrow x-ray pulses may be “sharpened” by purely mechanical means. This sounds surprisingly, but a team of theoretical and experimental physicists developed and realized such a method. It is based on fast motions, precisely synchronized with the pulses, of a target interacting with the x-ray light. Thereby, photons are redistributed within the x-ray pulse to the desired spectral region.

A team of theoretical physicists from the MPI for Nuclear Physics (MPIK) in Heidelberg has developed a novel method to intensify the spectrally broad x-ray...

Im Focus: Physicists Design Ultrafocused Pulses

Physicists working with researcher Oriol Romero-Isart devised a new simple scheme to theoretically generate arbitrarily short and focused electromagnetic fields. This new tool could be used for precise sensing and in microscopy.

Microwaves, heat radiation, light and X-radiation are examples for electromagnetic waves. Many applications require to focus the electromagnetic fields to...

Im Focus: Carbon Nanotubes Turn Electrical Current into Light-emitting Quasi-particles

Strong light-matter coupling in these semiconducting tubes may hold the key to electrically pumped lasers

Light-matter quasi-particles can be generated electrically in semiconducting carbon nanotubes. Material scientists and physicists from Heidelberg University...

Im Focus: Flexible proximity sensor creates smart surfaces

Fraunhofer IPA has developed a proximity sensor made from silicone and carbon nanotubes (CNT) which detects objects and determines their position. The materials and printing process used mean that the sensor is extremely flexible, economical and can be used for large surfaces. Industry and research partners can use and further develop this innovation straight away.

At first glance, the proximity sensor appears to be nothing special: a thin, elastic layer of silicone onto which black square surfaces are printed, but these...

Im Focus: 3-D scanning with water

3-D shape acquisition using water displacement as the shape sensor for the reconstruction of complex objects

A global team of computer scientists and engineers have developed an innovative technique that more completely reconstructs challenging 3D objects. An ancient...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Clash of Realities 2017: Registration now open. International Conference at TH Köln

26.07.2017 | Event News

Closing the Sustainability Circle: Protection of Food with Biobased Materials

21.07.2017 | Event News

»We are bringing Additive Manufacturing to SMEs«

19.07.2017 | Event News

 
Latest News

New 3-D imaging reveals how human cell nucleus organizes DNA and chromatin of its genome

28.07.2017 | Health and Medicine

Heavy metals in water meet their match

28.07.2017 | Power and Electrical Engineering

Oestrogen regulates pathological changes of bones via bone lining cells

28.07.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>