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: email@example.com, firstname.lastname@example.org
Ingemar Björklund | idw
Product placement: Only brands placed very prominently benefit from 3D technology
07.07.2016 | Alpen-Adria-Universität Klagenfurt
NASA Goddard network maintains communications from space to ground
02.03.2016 | NASA/Goddard Space Flight Center
Researchers from the Institute for Quantum Computing (IQC) at the University of Waterloo led the development of a new extensible wiring technique capable of controlling superconducting quantum bits, representing a significant step towards to the realization of a scalable quantum computer.
"The quantum socket is a wiring method that uses three-dimensional wires based on spring-loaded pins to address individual qubits," said Jeremy Béjanin, a PhD...
In a paper in Scientific Reports, a research team at Worcester Polytechnic Institute describes a novel light-activated phenomenon that could become the basis for applications as diverse as microscopic robotic grippers and more efficient solar cells.
A research team at Worcester Polytechnic Institute (WPI) has developed a revolutionary, light-activated semiconductor nanocomposite material that can be used...
By forcefully embedding two silicon atoms in a diamond matrix, Sandia researchers have demonstrated for the first time on a single chip all the components needed to create a quantum bridge to link quantum computers together.
"People have already built small quantum computers," says Sandia researcher Ryan Camacho. "Maybe the first useful one won't be a single giant quantum computer...
COMPAMED has become the leading international marketplace for suppliers of medical manufacturing. The trade fair, which takes place every November and is co-located to MEDICA in Dusseldorf, has been steadily growing over the past years and shows that medical technology remains a rapidly growing market.
In 2016, the joint pavilion by the IVAM Microtechnology Network, the Product Market “High-tech for Medical Devices”, will be located in Hall 8a again and will...
'Ferroelectric' materials can switch between different states of electrical polarization in response to an external electric field. This flexibility means they show promise for many applications, for example in electronic devices and computer memory. Current ferroelectric materials are highly valued for their thermal and chemical stability and rapid electro-mechanical responses, but creating a material that is scalable down to the tiny sizes needed for technologies like silicon-based semiconductors (Si-based CMOS) has proven challenging.
Now, Hiroshi Funakubo and co-workers at the Tokyo Institute of Technology, in collaboration with researchers across Japan, have conducted experiments to...
14.10.2016 | Event News
14.10.2016 | Event News
12.10.2016 | Event News
21.10.2016 | Health and Medicine
21.10.2016 | Information Technology
21.10.2016 | Materials Sciences