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The Impact of Price Bundling on the Evaluation of Bundled Products: Does It Matter How You Frame It?

Author

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  • Anjulie Hähnchen

    (BSL Transportation Consultants)

  • Bernhard Baumgartner

    (University of Osnabrueck)

Abstract

Companies often sell their products in a price bundle at a discount. These discounts can be presented to consumers in various ways. Past studies have predominantly focused on the short-term effects of various price reduction frames within bundle offers. The primary purpose of this paper is to investigate the post-promotion effects of presenting a product within differently framed price bundles on consumers’ assessment of this product. A choice-based conjoint design is applied to investigate purchase probability and willingness to pay. The results of the study indicate, among other findings, that the evaluation of a product can deteriorate if this product is presented in a price bundle and that this effect depends on the framing of price discounts in the bundle.

Suggested Citation

  • Anjulie Hähnchen & Bernhard Baumgartner, 2020. "The Impact of Price Bundling on the Evaluation of Bundled Products: Does It Matter How You Frame It?," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 72(1), pages 39-63, February.
    • Handle: RePEc:spr:schmbr:v:72:y:2020:i:1:d:10.1007_s41464-020-00082-2
    DOI: 10.1007/s41464-020-00082-2
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    References listed on IDEAS

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