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Consumers Prior Purchase Intentions and their Evaluation of Savings on Product Bundles
Book chapter

Consumers Prior Purchase Intentions and their Evaluation of Savings on Product Bundles

Rajneesh Suri and Kent B. Monroe
Optimal Bundling, pp 177-194
1999

Abstract

Monetary Saving Process Category Product Bundle Sale Price Total Saving
Bundling of more than one product has been a strategy used by retailers and manufacturers for decades in both consumer and industrial markets (Nagle 1984). The hardware and software packages offered by computer manufacturers, vacation packages offered by the travel agencies, a shaving foam sold along with razors at some retailers are just a few commercial examples of bundling. While offering such product bundles, marketers usually use one of two forms of product bundling—either a pure bundle or a mixed bundle. When following a pure bundling strategy, the marketer offers a combination of certain products or services only in bundled form. However, when a marketer gives an option to consumers to buy these products or services separately or as a bundle, the bundling strategy is called mixed bundling. Given the popularity and the effectiveness of mixed bundling in marketing, this research will focus only on this type of bundling strategy.

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