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The effect of incentives on customer evaluations of service bundles

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  • Andrews, Melinda L.
  • Benedicktus, Ray L.
  • Brady, Michael K.
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    Abstract

    Effects of service bundle incentives on perceived value, search intentions, and switching intentions are assessed in two independent studies. The first study demonstrates that service bundling influences switching and search intentions through perceived value. Results related to bundle incentives support the salience of the convenience associated with consolidating charges onto one bill. Further analysis reveals that explicit valuation of savings creates higher perceived value than convenience alone; however, search and switching intentions are unaffected by incentives or valuation thereof beyond the convenience effect. A second study replicates key parts of these results. Research and practical implications are discussed.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 63 (2010)
    Issue (Month): 1 (January)
    Pages: 71-76

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    Handle: RePEc:eee:jbrese:v:63:y:2010:i:1:p:71-76

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    Web page: http://www.elsevier.com/locate/jbusres

    Related research

    Keywords: Service Bundling Value Search Switching Incentives;

    References

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