The Impact of Price Bundling on the Evaluation of Bundled Products: Does It Matter How You Frame It?

Abstract

Companies often sell their products in a price bundle at a discount. These discounts can be presented to consumers in various ways.Past studies have predominantly focused on the short-term effects of various price reduction frames within bundle offers. The primary purpose of this paper is to investigate the post-promotion effects of presenting a product within differently framed price bundles on consumers' assessment of this product.A choice-based conjoint design is applied to investigate purchase probability and willingness to pay. The results of the study indicate, among other findings, that the evaluation of a product can deteriorate if this product is presented in a price bundle and that this effect depends on the framing of price discounts in the bundle.