Consumption Effects of Bundling : Consumer Perceptions , Firm Actions , and Public Policy Implications

  title={Consumption Effects of Bundling : Consumer Perceptions , Firm Actions , and Public Policy Implications},
  author={Kathryn M. Sharpe and Richard Staelin},
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 offering these three items at a discount. The authors first demonstrate that this practice increases the customer’s perceived value of the bundled items. In addition to the traditional economic rationale for consumer purchases of bundles, the authors find that consumers view the bundle as having value… CONTINUE READING
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