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How Buyers Evaluate Product Bundles: A Model of Anchoring and Adjustment

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  • Yadav, Manjit S

Abstract

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 of bundle evaluation in which the buyers anchored their evaluation on the item perceived as most important and then made adjustments on the basis of their evaluations of the remaining bundle items. The results of two computerized laboratory experiments suggested that people tend to examine bundle items in a decreasing order of perceived importance and make adjustments to form their overall evaluation of the bundle. Copyright 1994 by the University of Chicago.

Suggested Citation

  • Yadav, Manjit S, 1994. " How Buyers Evaluate Product Bundles: A Model of Anchoring and Adjustment," Journal of Consumer Research, Oxford University Press, vol. 21(2), pages 342-353, September.
  • Handle: RePEc:oup:jconrs:v:21:y:1994:i:2:p:342-53
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    File URL: http://dx.doi.org/10.1086/209402
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    Cited by:

    1. Marco Bertini & Luc Wathieu, 2008. "Research Note—Attention Arousal Through Price Partitioning," Marketing Science, INFORMS, vol. 27(2), pages 236-246, 03-04.
    2. repec:eee:touman:v:52:y:2016:i:c:p:455-467 is not listed on IDEAS
    3. Christine Lambey-Checchin, 2013. "Le mixed price bundling, une stratégie marketing alternative ? Le cas bancaire des « offres jeunes »," Post-Print hal-01507451, HAL.
    4. Andrews, Melinda L. & Benedicktus, Ray L. & Brady, Michael K., 2010. "The effect of incentives on customer evaluations of service bundles," Journal of Business Research, Elsevier, vol. 63(1), pages 71-76, January.
    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," IIMA Working Papers WP2014-01-07, Indian Institute of Management Ahmedabad, Research and Publication Department.
    6. Atalay, Kadir & Bakhtiar, Fayzan & Cheung, Stephen & Slonim, Robert, 2014. "Savings and prize-linked savings accounts," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 86-106.
    7. Sahay, Arvind & Mukherjee, Sumitava, 2014. "Weighted-Additive versus Reference-Dependent models of bundle evaluation: Evidence from discount framing on product bundles with surcharges," IIMA Working Papers WP2014-03-12, Indian Institute of Management Ahmedabad, Research and Publication Department.
    8. Cataldo, Alejandro & Ferrer, Juan–Carlos, 2017. "Optimal pricing and composition of multiple bundles: A two-step approach," European Journal of Operational Research, Elsevier, vol. 259(2), pages 766-777.
    9. Lindsey-Mullikin, Joan & Petty, Ross D., 2011. "Marketing tactics discouraging price search: Deception and competition," Journal of Business Research, Elsevier, vol. 64(1), pages 67-73, January.
    10. 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.
    11. Gerrit Frackenpohl & Gert Pönitzsch, 2013. "Bundling Public with Private Goods," Bonn Econ Discussion Papers bgse05_2013, University of Bonn, Germany.
    12. Raghubir, Priya, 2006. "An information processing review of the subjective value of money and prices," Journal of Business Research, Elsevier, vol. 59(10-11), pages 1053-1062, October.
    13. Srinuan, Pratompong & Srinuan, Chalita & Bohlin, Erik, 2014. "An empirical analysis of multiple services and choices of consumer in the Swedish telecommunications market," Telecommunications Policy, Elsevier, pages 449-459.
    14. Srinuan, Pratompong & Srinuan, Chalita & Bohlin, Erik, 2011. "Would you prefer a set menu or à la carte? An empirical study of multiple services and choices of consumer in the Swedish telecommunications market," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52163, International Telecommunications Society (ITS).
    15. Liu, Hsin-Hsien, 2013. "How promotional frames affect upgrade intentions," Journal of Economic Psychology, Elsevier, pages 237-248.
    16. Blaufus, Kay & Bob, Jonathan & Hundsdoerfer, Jochen & Kiesewetter, Dirk & Weimann, Joachim, 2013. "Decision heuristics and tax perception – An analysis of a tax-cut-cum-base-broadening policy," Journal of Economic Psychology, Elsevier, pages 1-16.
    17. Timothy Gilbride & Joseph Guiltinan & Joel Urbany, 2008. "Framing effects in mixed price bundling," Marketing Letters, Springer, vol. 19(2), pages 125-139, June.
    18. repec:spr:rvmgts:v:11:y:2017:i:4:d:10.1007_s11846-016-0208-x is not listed on IDEAS
    19. Gampert, Markus & Madlener, Reinhard, 2011. "Pan-European management of electricity portfolios: Risks and opportunities of contract bundling," Energy Policy, Elsevier, pages 2855-2865.
    20. Pierre Volle, 2001. "The Short-Term Effect of Store-Level Promotions on Store Choice and the Moderating Role of Individual Variables," Post-Print halshs-00164831, HAL.
    21. Lynn, Michael & Wang, Shuo, 2013. "The indirect effects of tipping policies on patronage intentions through perceived expensiveness, fairness, and quality," Journal of Economic Psychology, Elsevier, pages 62-71.
    22. Kimberlee Weaver & Stefan J. Hock & Stephen M. Garcia, 2016. "“Top 10” reasons: When adding persuasive arguments reduces persuasion," Marketing Letters, Springer, vol. 27(1), pages 27-38, March.
    23. Volle, Pierre, 2001. "The short-term effect of store-level promotions on store choice, and the moderating role of individual variables," Journal of Business Research, Elsevier, vol. 53(2), pages 63-73, August.
    24. Popkowski Leszczyc, Peter T.L. & Pracejus, John W. & Shen, Yingtao, 2008. "Why more can be less: An inference-based explanation for hyper-subadditivity in bundle valuation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 105(2), pages 233-246, March.

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