IDEAS home Printed from https://ideas.repec.org/p/iim/iimawp/12800.html
   My bibliography  Save this paper

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

Author

Listed:
  • Khandeparkar, Kapil

Abstract

New products are often bundled with strong brands as an introduction strategy. This study helps to understand the scenarios which will be most beneficial to both the products in the bundle. The enhancement effect and categorisation theory is used to explain that the new product's quality perception is higher when it is bundled with a strong brand of a higher price and this effect is moderated by the complementarity of the bundled components. Also, the quality perception of the strong brand is rated higher when it is bundled with a new product of assured quality.

Suggested Citation

  • 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.
    • Handle: RePEc:iim:iimawp:12800
    as

    Download full text from publisher

    File URL: https://www.iima.ac.in/sites/default/files/rnpfiles/15844780642014-01-07.pdf
    File Function: English Version
    Download Restriction: no
    ---><---

    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. 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.
    4. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    5. 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.
    6. Zaichkowsky, Judith Lynne, 1985. "Measuring the Involvement Construct," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(3), pages 341-352, December.
    7. 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.
    8. 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.
    9. William James Adams & Janet L. Yellen, 1976. "Commodity Bundling and the Burden of Monopoly," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(3), pages 475-498.
    10. 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.
    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. Meina Zhao & Jing Wang & Heng Zhang & Gang Zhao, 2019. "ERP Perspective Analysis of PSS Component and Decision-Making," Sustainability, MDPI, vol. 11(4), pages 1-17, February.
    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).

    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. 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.
    3. 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).
    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. Timothy Gilbride & Joseph Guiltinan & Joel Urbany, 2008. "Framing effects in mixed price bundling," Marketing Letters, Springer, vol. 19(2), pages 125-139, June.
    6. 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.
    7. Kim Huat Goh & Jesse C. Bockstedt, 2013. "The Framing Effects of Multipart Pricing on Consumer Purchasing Behavior of Customized Information Good Bundles," Information Systems Research, INFORMS, vol. 24(2), pages 334-351, June.
    8. 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.
    9. 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.
    10. Ritwik Raj & Mark H. Karwan & Chase Murray & Lei Sun, 2022. "Itemized pricing in B2B bundles with diminishing reservation prices and loss averse customers," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(4), pages 375-392, August.
    11. 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.
    12. 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.
    13. Kim, Hwang & Rao, Vithala R., 2023. "A comparison of online recommendation methods: Simultaneous versus sequential approaches," Journal of Retailing, Elsevier, vol. 99(2), pages 210-227.
    14. 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.
    15. 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.
    16. Peter H. Bloch & Omid Kamran-Disfani, 2018. "A framework for studying the impact of outdoor atmospherics in retailing," AMS Review, Springer;Academy of Marketing Science, vol. 8(3), pages 195-213, December.
    17. 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.
    18. Hamilton, R.W. & Puntoni, S. & Tavassoli, N.T., 2006. "Categorization by Groups," ERIM Report Series Research in Management ERS-2006-044-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    19. Jiayu Qian & Jee-Sun Park, 2021. "Influencer-brand fit and brand dilution in China’s luxury market: the moderating role of self-concept clarity," Journal of Brand Management, Palgrave Macmillan, vol. 28(2), pages 199-220, March.
    20. 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.

    More about this item

    Statistics

    Access and download statistics

    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:iim:iimawp:12800. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/eciimin.html .

    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.