Consumer preference for product bundles: The role of reduced search costs
Journal of the Academy of Marketing Science · 2006 · Volume 34 · Issue 4
Abstract
Most prior research on bundling from a consumer perspective has focused on how bundles are processed, particularly from a prospect theory or mental accounting perspective. In contrast, relatively little research has examined the factors that might drive consumer preference for bundles versus individual items. This article addresses one such factor: the potential to reduce search and assembly costs. Through exploratory interviews and two laboratory experiments, the authors show that preference for a bundle is greater when bundle choice will reduce search effort than when it will not, particularly among consumers who are less motivated to process information.
Keywords
bundling, product bundles, search costs, perceived value, consumer choice, information processing, need for cognition
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