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.
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
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