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

Globalizing from the Periphery: The Role of Consumer Paratextual Translation

Angela Gracia B. Cruz, Monash University, Australia
Yuri Seo, University of Auckland, New Zealand
Itir Binay, Monash University, Australia

Read More

Featured

Secrecy Prompts Nonconformity-Avoidance in Consumption Choice

DONGJIN HE, Hong Kong Polytechic University
Yuwei Jiang, Hong Kong Polytechic University
Gerald J. Gorn, Hong Kong Polytechic University

Read More

Featured

I4. Pink Tax: Are Some Marketing Practices Discriminatory?

Andrea Rochelle Bennett, University of North Texas
Audhesh Paswan, University of North Texas
Kate Goins, University of North Texas

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.