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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. Ali Azadeh & Hassan Songhori & Nima Salehi, 2017. "A unique optimization model for deterministic bundle pricing of two products with limited stock," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(2), pages 1154-1160, November.
    4. Markus Voeth & Renate Weißbacher, 2006. "Nachfragerbündelungen als Marketinginstrument: Eine modellgestützte Analyse," Schmalenbach Journal of Business Research, Springer, vol. 58(7), pages 864-888, November.
    5. Xu, Yueying Hazel & Wong, IpKin Anthony & Tan, Xiuchang Sherry, 2016. "Exploring event bundling: The strategy and its impacts," Tourism Management, Elsevier, vol. 52(C), pages 455-467.
    6. Chakravarty, A. & Mild, A. & Taudes, A., 2013. "Bundling decisions in supply chains," European Journal of Operational Research, Elsevier, vol. 231(3), pages 617-630.
    7. Peter Buxmann, 2002. "Strategien von Standardsoftware-Anbietern: Eine Analyse auf der Basis von Netzeffekten," Schmalenbach Journal of Business Research, Springer, vol. 54(5), pages 442-457, August.
    8. Martin Spann & Bernd Skiera, 2020. "Dynamische Preisgestaltung in der digitalisierten Welt [Dynamic Pricing in a Digitized World]," Schmalenbach Journal of Business Research, Springer, vol. 72(3), pages 321-342, September.
    9. Andreas Klein & Parimal Bhagat, 2010. "We-Commerce: Evidence On A New Virtual Commerce Platform," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 4(4), pages 107-124.
    10. Hans H. Bauer & Maik Hammerschmidt, 2004. "Marketing for Business-to-Business Electronic Markets," Microeconomics 0402010, University Library of Munich, Germany, revised 28 Mar 2004.
    11. 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.
    12. 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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