• Login
    View Item 
    •   IIMA Institutional Repository Home
    • Working Papers
    • Working Papers
    • View Item
    •   IIMA Institutional Repository Home
    • Working Papers
    • Working Papers
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Weighted-additive versus reference-dependent models of bundle evaluation: evidence from discount framing on product bundles with surcharges

    Thumbnail
    View/Open
    WP002393 (1.645Mb)
    Date
    2014
    Author
    Sahay, Arvind
    Mukherjee, Sumitava
    Metadata
    Show full item record
    Abstract
    Attractiveness of product bundles largely depends on how prices are framed. There is considerable disagreement among two contemporary models that posit how product bundles with discounts are evaluated. According to the weighted-additive model, discounts on the most important component in a bundle increases attractiveness. However according to the reference-dependent model, discounts on the most negatively valued component make a bundle more attractive. This research evaluated the relative influences of different price formats and discount offers for bundles with a primary product and a secondary surcharge component (shipping charge). Across two studies on a low and a high priced product, discounts on the negatively valued shipping surcharge increased attractiveness of the bundle compared to a similar discount on the product, thus supporting the reference-dependent model. Further, for a low priced product, bundling increased attractiveness while for a high priced product, partitioning was more attractive. Beyond theoretical understandings of price evaluation, these findings also have important practical implications for advertisers.
    URI
    http://hdl.handle.net/11718/13330
    Collections
    • Working Papers [2627]

    DSpace software copyright © 2002-2016  DuraSpace
    Contact Us | Send Feedback
    Theme by 
    Atmire NV
     

     

    Browse

    All of IIMA Institutional RepositoryCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

    My Account

    Login

    Statistics

    View Usage Statistics

    DSpace software copyright © 2002-2016  DuraSpace
    Contact Us | Send Feedback
    Theme by 
    Atmire NV