The role of complementarity and partner brand price level in new product introduction strategy using bundle offers: A study on the quality perception of bundle components

Abstract

New products are often bundled with strong brands as an introduction strategy. This study helps to understand the scenarios which will be most beneficial to both the products in the bundle. The enhancement effect and categorisation theory is used to explain that the new product's quality perception is higher when it is bundled with a strong brand of a higher price and this effect is moderated by the complementarity of the bundled components. Also, the quality perception of the strong brand is rated higher when it is bundled with a new product of assured quality.