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: firstname.lastname@example.org, email@example.com
Ingemar Björklund | idw
New Technologies for A/V Analysis and Search
13.04.2017 | Fraunhofer-Institut für Digitale Medientechnologie IDMT
On patrol in social networks
25.01.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO
Plants and algae use the enzyme Rubisco to fix carbon dioxide, removing it from the atmosphere and converting it into biomass. Algae have figured out a way to increase the efficiency of carbon fixation. They gather most of their Rubisco into a ball-shaped microcompartment called the pyrenoid, which they flood with a high local concentration of carbon dioxide. A team of scientists at Princeton University, the Carnegie Institution for Science, Stanford University and the Max Plank Institute of Biochemistry have unravelled the mysteries of how the pyrenoid is assembled. These insights can help to engineer crops that remove more carbon dioxide from the atmosphere while producing more food.
A warming planet
Our brains house extremely complex neuronal circuits, whose detailed structures are still largely unknown. This is especially true for the so-called cerebral cortex of mammals, where among other things vision, thoughts or spatial orientation are being computed. Here the rules by which nerve cells are connected to each other are only partly understood. A team of scientists around Moritz Helmstaedter at the Frankfiurt Max Planck Institute for Brain Research and Helene Schmidt (Humboldt University in Berlin) have now discovered a surprisingly precise nerve cell connectivity pattern in the part of the cerebral cortex that is responsible for orienting the individual animal or human in space.
The researchers report online in Nature (Schmidt et al., 2017. Axonal synapse sorting in medial entorhinal cortex, DOI: 10.1038/nature24005) that synapses in...
Whispering gallery mode (WGM) resonators are used to make tiny micro-lasers, sensors, switches, routers and other devices. These tiny structures rely on a...
Using ultrafast flashes of laser and x-ray radiation, scientists at the Max Planck Institute of Quantum Optics (Garching, Germany) took snapshots of the briefest electron motion inside a solid material to date. The electron motion lasted only 750 billionths of the billionth of a second before it fainted, setting a new record of human capability to capture ultrafast processes inside solids!
When x-rays shine onto solid materials or large molecules, an electron is pushed away from its original place near the nucleus of the atom, leaving a hole...
For the first time, physicists have successfully imaged spiral magnetic ordering in a multiferroic material. These materials are considered highly promising candidates for future data storage media. The researchers were able to prove their findings using unique quantum sensors that were developed at Basel University and that can analyze electromagnetic fields on the nanometer scale. The results – obtained by scientists from the University of Basel’s Department of Physics, the Swiss Nanoscience Institute, the University of Montpellier and several laboratories from University Paris-Saclay – were recently published in the journal Nature.
Multiferroics are materials that simultaneously react to electric and magnetic fields. These two properties are rarely found together, and their combined...
19.09.2017 | Event News
12.09.2017 | Event News
06.09.2017 | Event News
22.09.2017 | Life Sciences
22.09.2017 | Medical Engineering
22.09.2017 | Physics and Astronomy