Assessment of price elasticity on consumer evaluation of mixed price bundling
Abstract
Our project aim was to provide a framework for determining the optimal discount framing strategy in
case of bundled offerings.
Research was carried out in 3 phases:
• Hypothesis formation
• Measurement of Latitude of price acceptance
• Measurement of framing on buying intent
We conclude that the discount framing works better on the product with narrower LPA, provided that
the offer price of both products are in the middle of the LPA of respective products.
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