Red Or Green? Price, Product Content and Brand As Determinants of Bundling Purchasing

ABSTRACT - This study examines a unique bundle of compact discs, the so-called red-green pair, composed of a tying (red-tag) and a tie-in (green-tag). In this special case of mixed bundling, buyers may purchase the bundle, opting to buy a tie-in in order to obtain the tying at a discount. A computer simulation is utilized to collect empirical data. The result shows that an equivalent price reduction is more effective on the tying than on the tie-in. Furthermore, it is worth noting that consumers will give up purchasing the whole bundle when the price of a tie-in is too high. Finally, consumer preference for the content of a tie-in is a more significant influence on consumer choice than brand reputation.



Citation:

Dungchun Tsai and Hsiao-Ching Lee (2003) ,"Red Or Green? Price, Product Content and Brand As Determinants of Bundling Purchasing", in E - European Advances in Consumer Research Volume 6, eds. Darach Turley and Stephen Brown, Provo, UT : Association for Consumer Research, Pages: 381.

European Advances in Consumer Research Volume 6, 2003      Page 381

RED OR GREEN? PRICE, PRODUCT CONTENT AND BRAND AS DETERMINANTS OF BUNDLING PURCHASING

Dungchun Tsai, National Cheng Kung University, Taiwan

Hsiao-Ching Lee, National Cheng Kung University, Taiwan

ABSTRACT -

This study examines a unique bundle of compact discs, the so-called red-green pair, composed of a tying (red-tag) and a tie-in (green-tag). In this special case of mixed bundling, buyers may purchase the bundle, opting to buy a tie-in in order to obtain the tying at a discount. A computer simulation is utilized to collect empirical data. The result shows that an equivalent price reduction is more effective on the tying than on the tie-in. Furthermore, it is worth noting that consumers will give up purchasing the whole bundle when the price of a tie-in is too high. Finally, consumer preference for the content of a tie-in is a more significant influence on consumer choice than brand reputation.

----------------------------------------

Authors

Dungchun Tsai, National Cheng Kung University, Taiwan
Hsiao-Ching Lee, National Cheng Kung University, Taiwan



Volume

E - European Advances in Consumer Research Volume 6 | 2003



Share Proceeding

Featured papers

See More

Featured

A Meta-Analysis on the Endowment Effect in Experiments

DANIEL SUN, University of Calgary, Canada

Read More

Featured

R9. The Asymmetric Effects Of Attitude Toward The Brand (Symbolic Vs. Functional) Upon Recommendation System (Artificial Intelligence Vs. Human)

Kiwan Park, Seoul National University, USA
Yaeri Kim, Seoul National University, USA
Seojin Stacey Lee, Seoul National University, USA

Read More

Featured

How Passive Form Messages in CSR Advertisement Improve Consumer Reaction to the Campaign

Taehoon Park, University of South Carolina, USA
Anastasiya Pocheptsova Ghosh, University of Arizona, USA
Elise Chandon Ince, University of South Carolina, USA

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.