Consumer preference for product bundles: The role of reduced search costs

  title={Consumer preference for product bundles: The role of reduced search costs},
  author={Judy Harris and Edward A. Blair},
  journal={Journal of the Academy of Marketing Science},
Most prior research on bundling from a consumer perspective has focused on how bundles are processed, particularly from a prospect theory or mental accounting perspective. In contrast, relatively little research has examined the factors that might drive consumer preference for bundles versus individual items. This article addresses one such factor: the potential to reduce search and assembly costs. Through exploratory interviews and two laboratory experiments, the authors show that preference… Expand
Consumer processing of bundled prices: when do discounts matter?
Purpose – The purpose of this paper is to examine how factors that affect the processing of bundled price information moderate consumer response to a price discount on the bundle. Literature onExpand
Choosing options for products: the effects of mixed bundling on consumers’ inferences and choices
For product categories such as cars, computers, vacation packages, and new homes, consumers usually choose not only the product itself, but also various options for the product. Sellers decide how toExpand
Bundling Information Goods to Reduce Search Costs
We model the potential for a company bundling high search cost information goods to obtain an advantage over conventional sales. Using the streaming video industry as an example, we find thatExpand
Bounded rationality and consumer choice: an evaluation of consumer choice of mobile bundles
Although numerous prior studies have examined consumer valuations in bundling transactions from a theoretical perspective, relatively few have focused on large datasets. In addition, little priorExpand
Consumer perceptions of bundles and time-limited promotion deals: Do contracts matter?
Marketers use various types of deals to positively influence consumers' product evaluations. Across two experiments, we manipulated print advertisements to examine whether the commonly used dealExpand
Consumption Effects of Bundling: Consumer Perceptions, Firm Actions, and Public Policy Implications
The authors investigate consumer, firm, and policy implications of the fast-food marketing practice of bundling a soft drink and French fries with an entrée (i.e., “the combo meal”) and then offeringExpand
On search cost and the long tail: the moderating role of search cost
Evidence is provided that the conventional view that search costs directly impact consumer propensity to purchase a niche good can be improved by looking at search costs as an environmental condition which alters purchase behavior. Expand
Price promotions and products with low consumer ratings
Purpose Previous research indicates the aversive effect of low consumer ratings on consumers’ purchasing decisions. This paper aims to apply decision justifiability theory to investigate howExpand
The Impact of Service Bundling on Consumer Switching Behaviour: Evidence from UK Communication Markets
This paper empirically analyses the impact of the bundling of four common home communication services with a single supplier on the probability that an individual changes supplier using aExpand
Although much is known about how substitute products impact consumers’ decision processes, little is known about how product displays involving complementary items affect decisions. If consumers shopExpand


Functional compatibility risk and consumer preference for product bundles
The authors report the results of an experiment examining the effect of functional compatibility risk on consumer’ preference for product bundles vis-à-vis separate items. In a laboratory experiment,Expand
How Buyers Evaluate Product Bundles: A Model of Anchoring and Adjustment
Bundling, the joint offering of two or more items, is a common selling strategy, yet little research has been conducted on buyers' evaluation of bundle offers. We developed and tested a model ofExpand
Consumer evaluation of multi-product bundles: An information integration analysis
Consumers' reactions to multi-product bundles — two different products sold for one price — were obtained by systematically varying the attributes of both the primary product (e.g., VCRs) and theExpand
Complexity, uniqueness, and similarity in between‐bundle choice
When offering product/service bundles to customers, marketers must decide how best to configure the bundles such that consumers do not find the bundle‐choice particularly difficult. This paperExpand
Impact of Bundle Type, Price Framing and Familiarity on Purchase Intention for the Bundle
Bundling of products is very prevalent in the marketplace. For example, travel packages include airfare, lodging, and a rental car. Considerable economic research has focused on the change in profitsExpand
The Influence of Price Discount Framing on the Evaluation of a Product Bundle
Bundle offers consisting of two or more products often include a price discount. The impact of the price discount on the perceived attractiveness of the bundle has been shown to depend on whichExpand
Promotion Signal: Proxy for a Price Cut?
Evidence suggests that some consumers react to promotion signals without considering relative price information. We adopt Petty and Cacioppo's Elaboration Likelihood Model (ELM) to explain thisExpand
The Missing Link: Surrogate Consumers in the Marketing Chain
Though consumers commonly are assumed to be actively involved in important purchase decisions, the author proposes that consumers in fact often relinquish control to external experts, or surrogates,Expand
Bundling as a strategy for new product introduction: Effects on consumers' reservation prices for the bundle, the new product, and its tie-in
Abstract This research investigates the effects of bundling on consumers' reservation prices for the bundle and its components including a new product (i.e., the primary product) and a tie-inExpand
How Buyers Perceive Savings in a Bundle Price: An Examination of a Bundle's Transaction Value:
Although bundling, the selling of two or more products and/or services at a single price, has a history of economic research, marketing-oriented investigations have appeared only recently. This pap...