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Customized service bundles in a competitive context : integrating consumer's bundling, brand and quantity decisions

Author

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  • Agarwal, Manoj K.

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Frambach, Ruud T.

Abstract

The widespread use of bundling enables consumers to increasingly choose between different bundles from different firms. Therefore, while previous research has primarily examined fixed bundles in monopoly situations, we propose and estimate a latent class joint conditional model of bundling decions in a competitive customizable bundle context. Using individual choice data, we examine the impact of promotions and brand preference on bundling, brand choice, and bundle size decisions. We find promotions to primarily influence brand choice and secondarily bundling preference, but to have little impact on bundle size. The results confirm the importance of studying bundling in competitive contexts.

Suggested Citation

  • Agarwal, Manoj K. & Frambach, Ruud T., 2003. "Customized service bundles in a competitive context : integrating consumer's bundling, brand and quantity decisions," Serie Research Memoranda 0015, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    • Handle: RePEc:vua:wpaper:2003-15
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    File URL: http://degree.ubvu.vu.nl/repec/vua/wpaper/pdf/20030015.pdf
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    Citations

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    Cited by:

    1. 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, vol. 38(5), pages 449-459.
    2. 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).

    More about this item

    Keywords

    bundling; customizable bundles; customization; promotions; services;
    All these keywords.

    JEL classification:

    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General

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