The effect of bundle frame on purchase intention and customer's reservation price
by Issara Titheesawad; Phassawan Suntraruk
Title: | The effect of bundle frame on purchase intention and customer's reservation price |
Author(s): | Issara Titheesawad
Phassawan Suntraruk |
Contributor(s): | Assumption University. Martin de Tours School of Management and Economics |
Issued date: | 2008 |
Publisher: | Assumption University |
Citation: | AU Journal of Management 6, 1 (January-June 2008), 1-11 |
Abstract: |
This paper examined the influence of bundle frame, the presentation format of products within the bundle, on customers purchase intention and reservation price. The results from a laboratory experiment indicated that purchase intention was higher when the bundle price was presented in segre- gated form than an integrated one. However, presenting discounted price in segregated form posed negative impact on customers reservation price. In a segregated price framing, the discount prices of individual products are unambiguous resulting in customers inference that the product is cheap, thus, they will decrease the price that they are willing to pay (or reservation price) for the products in the future. On the other hand, in the integrated price framing, there is an ambiguity about the cost of each individual product , the inference that the price of individual product is low will not occur. Thus, the reservation price of customers who are presented with the segregated price framing is lower than those with integraled price framing. |
Description: |
In English ; only abstract in English. |
Subject(s): | Assumption University -- Periodicals
Bundling (Marketing) Consumers' preferences |
Keyword(s): | AU Journal of Management
AU Journal of Management -- 2008 |
Resource type: | Journal Article |
Type: | Text |
File type: | application/pdf |
Language: | eng |
Rights: | This work is protected by copyright. Reproduction or distribution of the work in any format is prohibited without written permission of the copyright owner. |
URI: | http://repository.au.edu/handle/6623004553/13987 |
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