The effect of bundle frame on purchase intention and customer's reservation price
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Publisher
Issued Date
2008
Genre
Language
eng
File Type
application/pdf
Citation
AU Journal of Management 6, 1 (January-June 2008), 1-11
Title
The effect of bundle frame on purchase intention and customer's reservation price
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Other Contributor(s)
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.
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