PubMed · 1991 · 497 citations · 0 references
ManagementMarketingMarketing ManagementMarketing StrategyNew Product DevelopmentStrategic MarketingBundle PricingBundlingConsumer TheoryPricing For New ProductsPricing New ProductsAir ConditionersConsumer Choice Under New ProductsStrategic Bundling
Customers purchase bundles of satisfaction rather than individual products, yet designing bundles that appeal to consumers while delivering producer benefits remains challenging. The authors contend that bundles should be treated as new products rather than marketing gimmicks. They present seven guidelines and a framework for creating competitive bundles.
It has long been a marketing axiom that customers buy bundles of satisfaction, not products. It follows, then, that they'll respond to certain combinations of products and services--air conditioners with free installation, combinations of software packages, or season tickets with parking privileges. The difficulty is in devising the bundles that both appeal to consumers and give cost or demand enhancing benefits to the producer. Eppen, Hanson, and Martin argue that the best approach is to treat bundles not as marketing gimmicks but as new products. They offer seven guidelines for creating competitive bundles and a framework for implementing them.