The dilemma of mixed bundles

The effects of price, brand, and content preference on music CD bundle choices

Hsiao Ching Lee, Dung-Chun Tsai, Ming De Wu

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

Most of the studies on bundling have focused on pure bundles; the literature has paid little attention to mixed bundles, in which the bundle item could be bought separately. Our research fills the literature gap by conducting a field study and a computer interactive experimental design. The results show that the prices of the focal item and the tie-in item have asymmetric effects on consumers' purchase intentions in regard to the whole bundle. Specifically, a price discount on the focal item is more effective in enhancing purchase intentions than on the tie-in. Also, a high priced tie-in may result in bundle choice deferral. Finally, when consumers choose the tie-in, content preference is more important than brand preference in CD bundle choices. The findings suggest that CD retailers should offer a high price discount on the focal item rather than on the tie-in, in their pricing and product strategies for bundling promotion.

Original languageEnglish
Pages (from-to)455-462
Number of pages8
JournalJournal of Retailing and Consumer Services
Volume18
Issue number5
DOIs
Publication statusPublished - 2011 Sep 1

Fingerprint

Music
Purchase intention
Bundling
Price discount
Field study
Product strategy
Retailers
Experimental design
Brand preference
Asymmetric effects
Pricing strategy

All Science Journal Classification (ASJC) codes

  • Marketing

Cite this

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The dilemma of mixed bundles : The effects of price, brand, and content preference on music CD bundle choices. / Lee, Hsiao Ching; Tsai, Dung-Chun; Wu, Ming De.

In: Journal of Retailing and Consumer Services, Vol. 18, No. 5, 01.09.2011, p. 455-462.

Research output: Contribution to journalArticle

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