When providing free features with a product, it is best if the features appeal to nearly all customers. A study found that customers were less likely to purchase a wristwatch that showed times for both coasts of the US compared to a basic wristwatch, as the dual time feature seemed unnecessary. The document recommends only bundling complementary products or services that are desirable to the vast majority of customers, otherwise customers may feel the purchase is wasteful. It suggests examining your own bundled features to ensure broad general appeal.
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Wristwatch
1. When Should You Provide Free
Features with a Product?
Prepared by J. Scott Armstrong (details on him at jscottarmstrong.com).
Please inform Scott about errors and also make suggestions (armstrong@wharton.upenn.edu)
Scott has taken these slides from adprin.com, a site that he founded. That site contains interactive versions of these
slides, along with linked references, videos, and webcasts, all in PPT and PPTX format that you can download.
2. Wristwatch case
Which offer would have the highest sales, given that prices
are the same:
__ a) a wristwatch, or
__ b) the same wristwatch that also shows time on both
East Coast and West Coast of the U.S. ?
Why?
See the next slide for the
answer.
Adapted from AdPrin.com 2
3. Intentions for this high-involvement product were 46% for “a”
and “30% for “b.”
Consider bundling prices of features or complementary products
or services only if they are desirable to nearly all customers
(Persuasive Advertising p 56-7).
Evidence
When one feature that is bundled seems
unnecessary to customers, they view the purchase
as wasteful. (Simonson, Carmon, and
O’Curry 1994).
To learn more, see AdPrin.com
4. Based on this exercise, write a small application step for
yourself, and set a deadline, preferably within one week. If you
are working with someone else, share your application plan and
the results of your application.
• For example, examine your bundled features for general
appeal.
Adapted from AdPrin.com