IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v16y2009i5p367-376.html
   My bibliography  Save this article

Bundling as a new product introduction strategy: The role of brand image and bundle features

Author

Listed:
  • Sheng, Shibin
  • Pan, Yue

Abstract

Marketers can bundle an unknown brand with a strong brand as a new product introduction strategy. Drawing upon the categorization theory and the elaboration likelihood model, this study examines how a new brand can benefit from bundling with a strong brand. The results of two studies indicate that consumers’ quality perception of a new brand will be affected by the brand image of a bundle partner, and this effect is moderated by the bundle forms and the complementarity of bundle components. Academic and managerial implications of these findings are presented, along with suggestions for further research.

Suggested Citation

  • Sheng, Shibin & Pan, Yue, 2009. "Bundling as a new product introduction strategy: The role of brand image and bundle features," Journal of Retailing and Consumer Services, Elsevier, vol. 16(5), pages 367-376.
    • Handle: RePEc:eee:joreco:v:16:y:2009:i:5:p:367-376
    DOI: 10.1016/j.jretconser.2009.04.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698909000307
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2009.04.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Loken, Barbara & Ward, James C, 1990. "Alternative Approaches to Understanding the Determinants of Typicality," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(2), pages 111-126, September.
    2. Janiszewski, Chris & Cunha, Marcus, Jr, 2004. "The Influence of Price Discount Framing on the Evaluation of a Product Bundle," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(4), pages 534-546, March.
    3. Sujan, Mita & Dekleva, Christine, 1987. "Product Categorization and Inference Making: Some Implications for Comparative Advertising," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 14(3), pages 372-378, December.
    4. Harlam, Bari A. & Krishna, Aradhna & Lehmann, Donald R. & Mela, Carl, 1995. "Impact of bundle type, price framing and familiarity on purchase intention for the bundle," Journal of Business Research, Elsevier, vol. 33(1), pages 57-66, May.
    5. Sujan, Mita, 1985. "Consumer Knowledge: Effects on Evaluation Strategies Mediating Consumer Judgments," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(1), pages 31-46, June.
    6. Cohen, Joel B & Basu, Kunal, 1987. "Alternative Models of Categorization: Toward a Contingent Processing Framework," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(4), pages 455-472, March.
    7. Simonin, Bernard L. & Ruth, Julie A., 1995. "Bundling as a strategy for new product introduction: Effects on consumers' reservation prices for the bundle, the new product, and its tie-in," Journal of Business Research, Elsevier, vol. 33(3), pages 219-230, July.
    8. Henderson, Pamela W. & Peterson, Robert A., 1992. "Mental accounting and categorization," Organizational Behavior and Human Decision Processes, Elsevier, vol. 51(1), pages 92-117, February.
    9. Yadav, Manjit S, 1994. "How Buyers Evaluate Product Bundles: A Model of Anchoring and Adjustment," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(2), pages 342-353, September.
    10. Mazumdar, Tridib & Jun, Sung Youl, 1993. "Consumer Evaluations of Multiple versus Single Price Change," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(3), pages 441-450, December.
    11. Meyers-Levy, Joan & Tybout, Alice M, 1989. "Schema Congruity as a Basis for Product Evaluation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(1), pages 39-54, June.
    12. Telser, L G, 1979. "A Theory of Monopoly of Complementary Goods," The Journal of Business, University of Chicago Press, vol. 52(2), pages 211-230, April.
    13. Boulding, William & Kirmani, Amna, 1993. "A Consumer-Side Experimental Examination of Signaling Theory: Do Consumers Perceive Warranties as Signals of Quality?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(1), pages 111-123, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Doha, Ahmed & Ghasemaghaei, Maryam & Hassanein, Khaled, 2017. "Social bundling: A novel method to enhance consumers’ intention to purchase online bundles," Journal of Retailing and Consumer Services, Elsevier, vol. 35(C), pages 106-117.
    2. Li, Wenjing & Hardesty, David M. & Craig, Adam W., 2018. "The impact of dynamic bundling on price fairness perceptions," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 204-212.
    3. Reeti Agarwal, 2018. "Indian Customers’ Attitude Towards Bundling: A Basis for Classification and Targeting," Global Business Review, International Management Institute, vol. 19(2), pages 510-531, April.
    4. Khandeparkar, Kapil, 2014. "The role of complementarity and partner brand price level in new product introduction strategy using bundle offers: A study on the quality perception of bundle components," IIMA Working Papers WP2014-01-07, Indian Institute of Management Ahmedabad, Research and Publication Department.
    5. Khandeparkar, Kapil, 2014. "The role of complementarity and partner brand price level in new product introduction strategy using bundle offers: A study on the quality perception of bundle components," Journal of Retailing and Consumer Services, Elsevier, vol. 21(6), pages 992-1000.
    6. Jung, Inhaeng Noah & Sharma, Amit & Mattila, Anna S., 2022. "The impact of supermarket credibility on purchase intention of novel food," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    7. Thomas M. Fojcik & Heike Proff, 2014. "Accelerating market diffusion of battery electric vehicles through alternative mobility concepts," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 14(3/4), pages 347-368.
    8. Melinda Matyas & Maria Kamargianni, 2019. "Survey design for exploring demand for Mobility as a Service plans," Transportation, Springer, vol. 46(5), pages 1525-1558, October.
    9. Paydas Turan, Ceyda, 2021. "What's inside matters: The impact of ingredient branding on consumers' purchasing behaviours in services," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    10. Huang, Yeu-Shiang & Ho, Jyh-Wen & Wu, Guan-Jin, 2022. "A study on promotion with strategic two-stage customized bundling," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    11. Khandeparkar, Kapil & Motiani, Manoj, 2020. "The effect of alcohol consumption and contextual cues on the evaluation of new brands of alcoholic beverages at the POS," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    12. Lee, Hsiao-Ching & Tsai, Dung Chun & Wu, Ming-De, 2011. "The dilemma of mixed bundles: The effects of price, brand, and content preference on music CD bundle choices," Journal of Retailing and Consumer Services, Elsevier, vol. 18(5), pages 455-462.
    13. Anja Plumeyer & Pascal Kottemann & Daniel Böger & Reinhold Decker, 2019. "Measuring brand image: a systematic review, practical guidance, and future research directions," Review of Managerial Science, Springer, vol. 13(2), pages 227-265, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khandeparkar, Kapil, 2014. "The role of complementarity and partner brand price level in new product introduction strategy using bundle offers: A study on the quality perception of bundle components," Journal of Retailing and Consumer Services, Elsevier, vol. 21(6), pages 992-1000.
    2. Khandeparkar, Kapil & Motiani, Manoj, 2020. "The effect of alcohol consumption and contextual cues on the evaluation of new brands of alcoholic beverages at the POS," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    3. Khandeparkar, Kapil, 2014. "The role of complementarity and partner brand price level in new product introduction strategy using bundle offers: A study on the quality perception of bundle components," IIMA Working Papers WP2014-01-07, Indian Institute of Management Ahmedabad, Research and Publication Department.
    4. Murray, John & Elms, Jonathan & Teller, Christoph, 2017. "Examining the role of store design on consumers’ cross-sectional perceptions of retail brand loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 147-156.
    5. Simon Blanchard & Wayne DeSarbo & A. Atalay & Nukhet Harmancioglu, 2012. "Identifying consumer heterogeneity in unobserved categories," Marketing Letters, Springer, vol. 23(1), pages 177-194, March.
    6. Timothy Gilbride & Joseph Guiltinan & Joel Urbany, 2008. "Framing effects in mixed price bundling," Marketing Letters, Springer, vol. 19(2), pages 125-139, June.
    7. Zhao, Min & Xia, Lan, 2021. "Joint or separate? The effect of visual presentation on imagery and product evaluation," International Journal of Research in Marketing, Elsevier, vol. 38(4), pages 935-952.
    8. Marion Garaus & Georgios Halkias, 2020. "One color fits all: product category color norms and (a)typical package colors," Review of Managerial Science, Springer, vol. 14(5), pages 1077-1099, October.
    9. Reeti Agarwal, 2018. "Indian Customers’ Attitude Towards Bundling: A Basis for Classification and Targeting," Global Business Review, International Management Institute, vol. 19(2), pages 510-531, April.
    10. Punj, Girish & Moon, Junyean, 2002. "Positioning options for achieving brand association: a psychological categorization framework," Journal of Business Research, Elsevier, vol. 55(4), pages 275-283, April.
    11. Lee, Hsiao-Ching & Tsai, Dung Chun & Wu, Ming-De, 2011. "The dilemma of mixed bundles: The effects of price, brand, and content preference on music CD bundle choices," Journal of Retailing and Consumer Services, Elsevier, vol. 18(5), pages 455-462.
    12. Deng, Qian (Claire) & Messinger, Paul R., 2022. "Dimensions of brand-extension fit," International Journal of Research in Marketing, Elsevier, vol. 39(3), pages 764-787.
    13. Agarwal, Manoj K. & Frambach, Ruud T. & Stremersch, Stefan, 2000. "Does size matter? : disentangling consumers' bundling preferences," Serie Research Memoranda 0033, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    14. Davies, Antony & Cline, Thomas W., 2005. "A consumer behavior approach to modeling monopolistic competition," Journal of Economic Psychology, Elsevier, vol. 26(6), pages 797-826, December.
    15. Vera Herédia-Colaço & Rita Coelho do Vale & Sofia B. Villas-Boas, 2019. "Does Fair Trade Breed Contempt? A Cross-Country Examination on the Moderating Role of Brand Familiarity and Consumer Expertise on Product Evaluation," Journal of Business Ethics, Springer, vol. 156(3), pages 737-758, May.
    16. Schoormans, Jan P. L. & Robben, Henry S. J., 1997. "The effect of new package design on product attention, categorization and evaluation," Journal of Economic Psychology, Elsevier, vol. 18(2-3), pages 271-287, April.
    17. Devetag, M Giovanna, 1999. "From Utilities to Mental Models: A Critical Survey on Decision Rules and Cognition in Consumer Choice," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 8(2), pages 289-351, June.
    18. Benjamin Polak & Rupert Stadler & Mark Heitmann & Andreas Herrmann & Marc Cäsar & Jan Landwehr, 2010. "Aufpreise oder Gesamtpreise? Wirkung der Preisdarstellung auf das individuelle Entscheidungsverhalten," Schmalenbach Journal of Business Research, Springer, vol. 62(8), pages 911-932, December.
    19. Gaëlle Pantin-Sohier & Caroline Lancelot Miltgen, 2012. "L'impact des stimuli informationnels d'un nouveau produit alimentaire sur les réactions affectives et cognitives du consommateur," Post-Print hal-01117036, HAL.
    20. Scarpi, Daniele & Pizzi, Gabriele & Raggiotto, Francesco, 2019. "The extraordinary attraction of being ordinary: A moderated mediation model of purchase for prototypical products," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 267-278.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:16:y:2009:i:5:p:367-376. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.