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

The quality perception of a new brand improves when it is bundled with a product having a strong brand image, moderated by the level of complementarity between the bundle components. This study takes this research forward with the help of two experiments. The first experiment uses anchoring and adjustment process to conclude that the quality perception of a new brand further strengthens if bundled with a strong brand of a higher price category than itself. The second experiment concludes that the quality perception of the strong brand can also deter if bundled with a new product of uncertain quality.