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The Benefits Of Bundling Strategies

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  • Torsten Olderog
  • Bernd Skiera

Abstract

This paper analyzes the effects of three bundling strategies – unbundling, mixed bundling, and pure bundling – on profit and sales, using a simulation study based on a model by Schmalensee (1984). The analysis shows under what conditions which strategy is the most profitable, how large the profit and sales differentials are for each strategy, and what characteristics the corresponding price structures have. Based on our results, we explain the differences observed in the study and derive a set of implications for practical price structuring.

Suggested Citation

  • Torsten Olderog & Bernd Skiera, 2000. "The Benefits Of Bundling Strategies," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 52(2), pages 137-159, April.
  • Handle: RePEc:sbr:abstra:v:52:y:2000:i:2:p:137-159
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    Cited by:

    1. Mayer, Stefan & Klein, Robert & Seiermann, Stephanie, 2013. "A simulation-based approach to price optimisation of the mixed bundling problem with capacity constraints," International Journal of Production Economics, Elsevier, vol. 145(2), pages 584-598.
    2. Nils Boysen & Christian Ringle, 2008. "Über die Wirkung der Optionsbündelung auf die Ablaufplanung einer Variantenfließfertigung," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 18(3), pages 301-321, February.
    3. repec:eee:touman:v:52:y:2016:i:c:p:455-467 is not listed on IDEAS
    4. Chakravarty, A. & Mild, A. & Taudes, A., 2013. "Bundling decisions in supply chains," European Journal of Operational Research, Elsevier, vol. 231(3), pages 617-630.
    5. Hans H. Bauer & Maik Hammerschmidt, 2004. "Marketing for Business-to-Business Electronic Markets," Microeconomics 0402010, EconWPA, revised 28 Mar 2004.
    6. Sonja Lehmann & Peter Buxmann, 2009. "Pricing Strategies of Software Vendors," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 1(6), pages 452-462, December.
    7. Voigt, Tim & Kuhl, Rainer, 2008. "Competencies of Reconfiguration in Product Development – The Case of Convenience Food," 110th Seminar, February 18-22, 2008, Innsbruck-Igls, Austria 49880, European Association of Agricultural Economists.

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