This document discusses research on consumers' decision difficulty when choosing between bundles of products and services. It presents three hypotheses: 1) Decision difficulty increases with the number of items in each bundle. 2) Decision difficulty is higher when bundles have more unique items compared to fewer unique items. 3) Choosing between similar bundles is more difficult than dissimilar bundles. The document describes focus groups that explored consumers' ideal bundles and their perceptions of choosing between similar versus dissimilar bundles. The focus groups provided insights that informed the development of a survey to test the hypotheses.
THE IMPACT OF PSYCHOLOGICAL BARRIERS IN INFLUENCING CUSTOMERS’ DECISIONS IN T...ijmpict
Increased competition in broadband telecommunication market led to a surge in campaigns and packages
for customers. Whereas traditional economic theory assumed that abundance of alternatives is to be
welcomed by customers, recent theories however, have emphasized that multiple choices may have a
negative role in adoption or switching behavior. The unorthodox conclusions of negative impact of wide
assortment of choices were studied through the lens of behavioral economics. Most notably, “anticipated
regret” was identified to be major cause of choice deferral of purchase. This paper investigates the role of
selection difficulty and anticipated regret on the intention of broadband subscribers to upgrade to higher
connection speed. The result shows that there is a significant positive relationship between anticipated
regret and decision avoidance. Results also indicate that selection difficulty has positive relationship with
switching cost thus indirectly reducing the perceived net benefit of upgraded internet connection. This
study, therefore, confirmed the significant impact of psychological barriers together with economic factors
in influencing customers’ decisions in the telecommunication sector. This paper thus recommends
managers of telecom firms and regulators to seek reducing anticipated regret and selection difficulty when
promoting upgraded services even when such services are promising higher economic benefit.
THE IMPACT OF PSYCHOLOGICAL BARRIERS IN INFLUENCING CUSTOMERS’ DECISIONS IN T...ijmpict
Increased competition in broadband telecommunication market led to a surge in campaigns and packages for customers. Whereas traditional economic theory assumed that abundance of alternatives is to be welcomed by customers, recent theories however, have emphasized that multiple choices may have a negative role in adoption or switching behavior. The unorthodox conclusions of negative impact of wide assortment of choices were studied through the lens of behavioral economics. Most notably, “anticipated regret” was identified to be major cause of choice deferral of purchase. This paper investigates the role of selection difficulty and anticipated regret on the intention of broadband subscribers to upgrade to higher connection speed. The result shows that there is a significant positive relationship between anticipated regret and decision avoidance. Results also indicate that selection difficulty has positive relationship with switching cost thus indirectly reducing the perceived net benefit of upgraded internet connection. This study, therefore, confirmed the significant impact of psychological barriers together with economic factors in influencing customers’ decisions in the telecommunication sector. This paper thus recommends managers of telecom firms and regulators to seek reducing anticipated regret and selection difficulty when promoting upgraded services even when such services are promising higher economic benefit.
Wang & BenbasatInteractive Decision AidsRESEARCH ARTICLE.docxjessiehampson
Wang & Benbasat/Interactive Decision Aids
RESEARCH ARTICLE
INTERACTIVE DECISION AIDS FOR CONSUMER DECISION
MAKING IN E-COMMERCE: THE INFLUENCE OF PERCEIVED
STRATEGY RESTRICTIVENESS1
By: Weiquan Wang
Department of Information Systems
Faculty of Business
City University of Hong Kong
Tat Chee Avenue, Kowloon
HONG KONG SAR
[email protected]
Izak Benbasat
Sauder School of Business
University of British Columbia
2053 Main Mall
Vancouver, BC V6T 1Z2
CANADA
[email protected]
Abstract
This paper extends the effort–accuracy framework of cogni-
tion by taking into account the perceived strategy restric-
tiveness of decision aids, and tests the extended framework in
a context in which online decision aids are used to elicit
consumers’ preferences, automate the processing of the pre-
ferences, and provide product advice for consumers. Three
types of decision aids with different decision strategy support
capabilities (an additive-compensatory based aid, an elimina-
tion-based aid, and a hybrid aid supporting both strategies)
1Bernard Tan was the accepting senior editor for this paper. Cheri Speier
served as the associate editor.
are compared in terms of users’ perceptions of strategy
restrictiveness, advice quality, and cognitive effort. These
comparisons are grounded on the properties of normativeness
and complementarity of decision strategies employed by the
aids. A normative strategy takes into account both the users’
attribute preferences and the relative importance of such
preferences, and allows for trade-offs among preferences
(e.g., additive–compensatory). Strategy complementarity
indicates support for decision rules based on multiple
strategies (e.g., both additive–compensatory and elimination
strategies).
The experimental results support the validity of the extended
effort–accuracy–restrictiveness framework and the effects of
strategy normativeness, but not the effects of strategy com-
plementarity. In addition to the perceptions of cognitive effort
and advice quality, perceived strategy restrictiveness exerts
a significant influence on consumers’ intentions to use online
decision aids. The additive–compensatory aid is perceived to
be less restrictive, of higher quality, and less effortful than the
elimination aid, whereas the hybrid aid is not perceived to be
any different from the additive–compensatory aid.
Keywords: Decision aid, decision strategy, restrictiveness,
cognitive effort, advice quality, strategy normativeness,
strategy complementarity, explanation
Introduction
With the rapid advancement of Internet and Web-based appli-
cations, interactive online decision aids are increasingly being
made available to facilitate consumers’ online decision
MIS Quarterly Vol. 33 No.2, pp. 293-320/June 2009 293
Wang & Benbasat/Interactive Decision Aids
making (Grenci and Todd 2002; Häubl and Trifts 2000;
Leavitt 2006; Wang and Benbasat 2005; Xiao and Benbasat
2007). These aids elicit users’ preferences, carry out a set of
sear ...
Abhishek Parmar (1) , Ms. Mahima Yadav (2), Mr. Abdul Kalam (3) (1) Scholar, M.Des (UX), School of Architecture, Planning & Design, DIT University, Dehradun(2),(3) Assistant Professor, School of Architecture, Planning & Design, DIT University, Dehradun. The construction industry heavily relies on clay bricks, but their production raises environmental concerns. This study explores consumer willingness to pay (WTP) for sustainable bricks with a lower environmental impact. We investigate how messaging about the environmental benefits of these bricks resonates with consumers. Using a survey methodology (or chosen method), we examine consumer WTP for sustainable bricks compared to conventional options. The study also analyzes factors influencing WTP, such as environmental concern and perceived benefits. Furthermore, we explore preferred messaging themes regarding the environmental advantages of sustainable bricks. Our findings contribute to understanding consumer behavior in the context of sustainable construction practices. The research provides valuable insights for the clay brick industry to develop effective strategies for promoting sustainable products and aligning with consumer preferences.
IntroductionTMJ (Tempro mandibular joint) problems are one of m.docxmariuse18nolet
Introduction:
TMJ (Tempro mandibular joint) problems are one of most controversial subject in dentistry due to multifactorial effect on the TMJ ( ). Pain, Noise, clicking and limitation of opening is the majority of problems with TMJ () .as modality of treatment there are conservative treatment like physiotherapy, drugs, Injections, Orthodontics and occlusal adjustment () and there are Non-conservative treatment like Surgical procedures with or without orthodontics (). Still the controversy surrounding the treatment and the effect of Musculoskeletal harmony correction by Orthognathic surgery .some studies show improvement in TMJ symptom (), on the other hand some studies show No improvement and Stability () or even deterioration (). The prevalence of TMD in relation to Malocclusion show increase in Class II patients especially in Patients with mandibular retrognathism ,low angle case and deep bite().TMD treatment will be more favorable results in patient with retrognathic mandible more than prognathic one() .
This is a retrospective study done on 100 patients whom had Bimaxillary orthognatic surgery in Maxillofacial department in Paracelsus krankenhaus ruit hospital in Ruit, Ostfildren, South of Germany between October 2011-2014. Investigation and examination was done on TMJ sign and symptoms before operation and after one year.
Material and Methods
The study group consists of 100 consecutive patients ( M, F) aged over 18 years with dentofacial deformities undergoing Bimaxillary orthognathic surgery at the department of oral and Maxillofacial surgery at Paracelsus Krankenhaus Ruit (Germany) between October 2011 and October 2014.
All patients received Lefort 1 osteotomy (with or without segmentation) and bilateral sagittal split osteotomy with miniplates fixation without IMF.
The patients were examined both clinically and radiographically. The clinical consists of: 1-exraoral examination and includes the presence or absence of TMJ clicking, crepitus and pain
All of patients were assessed radiologically three times, before the surgery, one week after surgery and one year after surgery by taking right lateral cephalometric x-rays
MRI was taken for patients with TMJ problems before the surgery to assess any internal derangement or pathology within the joint.
Business Review Q1 2011 9www.philadelphiafed.org
Why do people in densely
populated areas tend to be more
productive? In countries like the U.S.,
places dense in workers, machines,
D
BY JEFFREY LIN
Urban Productivity Advantages from Job
Search and Matching*
*The views expressed here are those of the
author and do not necessarily represent
the views of the Federal Reserve Bank of
Philadelphia or the Federal Reserve System.
ensely populated areas tend to be more
productive. Of course, the cost of living and
producing in these locations is higher because
congestion raises the cost of scarce fixed
resources such as land. But despite the higher prices,
ma.
Agen distributor resmi afc sop100+ asli murah ada bpom halal 0822 1777 7162SEKOLAH BISNIS INDONESIA
SOP 100+ diproduksi dengan menggunakan teknologi terkini dari Jepang, Teknologi Degradasi Biologis Enzim, yang mana teknologi hidrolisis unik tersebut dipatenkan (Japanese Patent No. 3691497).
Menghasilkan konsentrat peptida nano size 600 Dalton, sehingga mudah untuk diserap dan berfungsi maksimal dalam tubuh manusia.
Berdasarkan penelitian scientist selama bertahun-tahun di Jepang Food Research Laboratories (JFl).
SOP100+ mengandung 18x lebih banyak asam amino, kolagen, kondrotin, kondroitin, sulfat, asam hyaluronic, asam nukleat, elastin & komponen baik lainnya, dibandingkan dgn plasenta RUSA & DOMBA.
Agen distributor resmi SOP100+ utsukushhii asli murah ada bpom halal 0852 57...SEKOLAH BISNIS INDONESIA
SOP 100+ diproduksi dengan menggunakan teknologi terkini dari Jepang, Teknologi Degradasi Biologis Enzim, yang mana teknologi hidrolisis unik tersebut dipatenkan (Japanese Patent No. 3691497).
Menghasilkan konsentrat peptida nano size 600 Dalton, sehingga mudah untuk diserap dan berfungsi maksimal dalam tubuh manusia.
Berdasarkan penelitian scientist selama bertahun-tahun di Jepang Food Research Laboratories (JFl).
SOP100+ mengandung 18x lebih banyak asam amino, kolagen, kondrotin, kondroitin, sulfat, asam hyaluronic, asam nukleat, elastin & komponen baik lainnya, dibandingkan dgn plasenta RUSA & DOMBA.
THE IMPACT OF PSYCHOLOGICAL BARRIERS IN INFLUENCING CUSTOMERS’ DECISIONS IN T...ijmpict
Increased competition in broadband telecommunication market led to a surge in campaigns and packages
for customers. Whereas traditional economic theory assumed that abundance of alternatives is to be
welcomed by customers, recent theories however, have emphasized that multiple choices may have a
negative role in adoption or switching behavior. The unorthodox conclusions of negative impact of wide
assortment of choices were studied through the lens of behavioral economics. Most notably, “anticipated
regret” was identified to be major cause of choice deferral of purchase. This paper investigates the role of
selection difficulty and anticipated regret on the intention of broadband subscribers to upgrade to higher
connection speed. The result shows that there is a significant positive relationship between anticipated
regret and decision avoidance. Results also indicate that selection difficulty has positive relationship with
switching cost thus indirectly reducing the perceived net benefit of upgraded internet connection. This
study, therefore, confirmed the significant impact of psychological barriers together with economic factors
in influencing customers’ decisions in the telecommunication sector. This paper thus recommends
managers of telecom firms and regulators to seek reducing anticipated regret and selection difficulty when
promoting upgraded services even when such services are promising higher economic benefit.
THE IMPACT OF PSYCHOLOGICAL BARRIERS IN INFLUENCING CUSTOMERS’ DECISIONS IN T...ijmpict
Increased competition in broadband telecommunication market led to a surge in campaigns and packages for customers. Whereas traditional economic theory assumed that abundance of alternatives is to be welcomed by customers, recent theories however, have emphasized that multiple choices may have a negative role in adoption or switching behavior. The unorthodox conclusions of negative impact of wide assortment of choices were studied through the lens of behavioral economics. Most notably, “anticipated regret” was identified to be major cause of choice deferral of purchase. This paper investigates the role of selection difficulty and anticipated regret on the intention of broadband subscribers to upgrade to higher connection speed. The result shows that there is a significant positive relationship between anticipated regret and decision avoidance. Results also indicate that selection difficulty has positive relationship with switching cost thus indirectly reducing the perceived net benefit of upgraded internet connection. This study, therefore, confirmed the significant impact of psychological barriers together with economic factors in influencing customers’ decisions in the telecommunication sector. This paper thus recommends managers of telecom firms and regulators to seek reducing anticipated regret and selection difficulty when promoting upgraded services even when such services are promising higher economic benefit.
Wang & BenbasatInteractive Decision AidsRESEARCH ARTICLE.docxjessiehampson
Wang & Benbasat/Interactive Decision Aids
RESEARCH ARTICLE
INTERACTIVE DECISION AIDS FOR CONSUMER DECISION
MAKING IN E-COMMERCE: THE INFLUENCE OF PERCEIVED
STRATEGY RESTRICTIVENESS1
By: Weiquan Wang
Department of Information Systems
Faculty of Business
City University of Hong Kong
Tat Chee Avenue, Kowloon
HONG KONG SAR
[email protected]
Izak Benbasat
Sauder School of Business
University of British Columbia
2053 Main Mall
Vancouver, BC V6T 1Z2
CANADA
[email protected]
Abstract
This paper extends the effort–accuracy framework of cogni-
tion by taking into account the perceived strategy restric-
tiveness of decision aids, and tests the extended framework in
a context in which online decision aids are used to elicit
consumers’ preferences, automate the processing of the pre-
ferences, and provide product advice for consumers. Three
types of decision aids with different decision strategy support
capabilities (an additive-compensatory based aid, an elimina-
tion-based aid, and a hybrid aid supporting both strategies)
1Bernard Tan was the accepting senior editor for this paper. Cheri Speier
served as the associate editor.
are compared in terms of users’ perceptions of strategy
restrictiveness, advice quality, and cognitive effort. These
comparisons are grounded on the properties of normativeness
and complementarity of decision strategies employed by the
aids. A normative strategy takes into account both the users’
attribute preferences and the relative importance of such
preferences, and allows for trade-offs among preferences
(e.g., additive–compensatory). Strategy complementarity
indicates support for decision rules based on multiple
strategies (e.g., both additive–compensatory and elimination
strategies).
The experimental results support the validity of the extended
effort–accuracy–restrictiveness framework and the effects of
strategy normativeness, but not the effects of strategy com-
plementarity. In addition to the perceptions of cognitive effort
and advice quality, perceived strategy restrictiveness exerts
a significant influence on consumers’ intentions to use online
decision aids. The additive–compensatory aid is perceived to
be less restrictive, of higher quality, and less effortful than the
elimination aid, whereas the hybrid aid is not perceived to be
any different from the additive–compensatory aid.
Keywords: Decision aid, decision strategy, restrictiveness,
cognitive effort, advice quality, strategy normativeness,
strategy complementarity, explanation
Introduction
With the rapid advancement of Internet and Web-based appli-
cations, interactive online decision aids are increasingly being
made available to facilitate consumers’ online decision
MIS Quarterly Vol. 33 No.2, pp. 293-320/June 2009 293
Wang & Benbasat/Interactive Decision Aids
making (Grenci and Todd 2002; Häubl and Trifts 2000;
Leavitt 2006; Wang and Benbasat 2005; Xiao and Benbasat
2007). These aids elicit users’ preferences, carry out a set of
sear ...
Abhishek Parmar (1) , Ms. Mahima Yadav (2), Mr. Abdul Kalam (3) (1) Scholar, M.Des (UX), School of Architecture, Planning & Design, DIT University, Dehradun(2),(3) Assistant Professor, School of Architecture, Planning & Design, DIT University, Dehradun. The construction industry heavily relies on clay bricks, but their production raises environmental concerns. This study explores consumer willingness to pay (WTP) for sustainable bricks with a lower environmental impact. We investigate how messaging about the environmental benefits of these bricks resonates with consumers. Using a survey methodology (or chosen method), we examine consumer WTP for sustainable bricks compared to conventional options. The study also analyzes factors influencing WTP, such as environmental concern and perceived benefits. Furthermore, we explore preferred messaging themes regarding the environmental advantages of sustainable bricks. Our findings contribute to understanding consumer behavior in the context of sustainable construction practices. The research provides valuable insights for the clay brick industry to develop effective strategies for promoting sustainable products and aligning with consumer preferences.
IntroductionTMJ (Tempro mandibular joint) problems are one of m.docxmariuse18nolet
Introduction:
TMJ (Tempro mandibular joint) problems are one of most controversial subject in dentistry due to multifactorial effect on the TMJ ( ). Pain, Noise, clicking and limitation of opening is the majority of problems with TMJ () .as modality of treatment there are conservative treatment like physiotherapy, drugs, Injections, Orthodontics and occlusal adjustment () and there are Non-conservative treatment like Surgical procedures with or without orthodontics (). Still the controversy surrounding the treatment and the effect of Musculoskeletal harmony correction by Orthognathic surgery .some studies show improvement in TMJ symptom (), on the other hand some studies show No improvement and Stability () or even deterioration (). The prevalence of TMD in relation to Malocclusion show increase in Class II patients especially in Patients with mandibular retrognathism ,low angle case and deep bite().TMD treatment will be more favorable results in patient with retrognathic mandible more than prognathic one() .
This is a retrospective study done on 100 patients whom had Bimaxillary orthognatic surgery in Maxillofacial department in Paracelsus krankenhaus ruit hospital in Ruit, Ostfildren, South of Germany between October 2011-2014. Investigation and examination was done on TMJ sign and symptoms before operation and after one year.
Material and Methods
The study group consists of 100 consecutive patients ( M, F) aged over 18 years with dentofacial deformities undergoing Bimaxillary orthognathic surgery at the department of oral and Maxillofacial surgery at Paracelsus Krankenhaus Ruit (Germany) between October 2011 and October 2014.
All patients received Lefort 1 osteotomy (with or without segmentation) and bilateral sagittal split osteotomy with miniplates fixation without IMF.
The patients were examined both clinically and radiographically. The clinical consists of: 1-exraoral examination and includes the presence or absence of TMJ clicking, crepitus and pain
All of patients were assessed radiologically three times, before the surgery, one week after surgery and one year after surgery by taking right lateral cephalometric x-rays
MRI was taken for patients with TMJ problems before the surgery to assess any internal derangement or pathology within the joint.
Business Review Q1 2011 9www.philadelphiafed.org
Why do people in densely
populated areas tend to be more
productive? In countries like the U.S.,
places dense in workers, machines,
D
BY JEFFREY LIN
Urban Productivity Advantages from Job
Search and Matching*
*The views expressed here are those of the
author and do not necessarily represent
the views of the Federal Reserve Bank of
Philadelphia or the Federal Reserve System.
ensely populated areas tend to be more
productive. Of course, the cost of living and
producing in these locations is higher because
congestion raises the cost of scarce fixed
resources such as land. But despite the higher prices,
ma.
Agen distributor resmi afc sop100+ asli murah ada bpom halal 0822 1777 7162SEKOLAH BISNIS INDONESIA
SOP 100+ diproduksi dengan menggunakan teknologi terkini dari Jepang, Teknologi Degradasi Biologis Enzim, yang mana teknologi hidrolisis unik tersebut dipatenkan (Japanese Patent No. 3691497).
Menghasilkan konsentrat peptida nano size 600 Dalton, sehingga mudah untuk diserap dan berfungsi maksimal dalam tubuh manusia.
Berdasarkan penelitian scientist selama bertahun-tahun di Jepang Food Research Laboratories (JFl).
SOP100+ mengandung 18x lebih banyak asam amino, kolagen, kondrotin, kondroitin, sulfat, asam hyaluronic, asam nukleat, elastin & komponen baik lainnya, dibandingkan dgn plasenta RUSA & DOMBA.
Agen distributor resmi SOP100+ utsukushhii asli murah ada bpom halal 0852 57...SEKOLAH BISNIS INDONESIA
SOP 100+ diproduksi dengan menggunakan teknologi terkini dari Jepang, Teknologi Degradasi Biologis Enzim, yang mana teknologi hidrolisis unik tersebut dipatenkan (Japanese Patent No. 3691497).
Menghasilkan konsentrat peptida nano size 600 Dalton, sehingga mudah untuk diserap dan berfungsi maksimal dalam tubuh manusia.
Berdasarkan penelitian scientist selama bertahun-tahun di Jepang Food Research Laboratories (JFl).
SOP100+ mengandung 18x lebih banyak asam amino, kolagen, kondrotin, kondroitin, sulfat, asam hyaluronic, asam nukleat, elastin & komponen baik lainnya, dibandingkan dgn plasenta RUSA & DOMBA.
Sekolah bisnis online internet marketing terbaik di indonesia sb1m http;//bit...SEKOLAH BISNIS INDONESIA
cara bisnis online baju, belajar bisnis online gratis, bisnis online terbaru, cara memulai bisnis online dari nol, usaha online yang menguntungkan, cara bisnis online shop tanpa modal, cara memulai bisnis online shop baju, cara memulai bisnis online tanpa modal, cara menjadi internet marketer, internet marketer indonesia, internet marketer adalah, contoh internet marketing, internet marketer terbaik indonesia, belajar internet marketing, pengertian internet marketing
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Treatment pada wajah agar terlihat cerah dengan menggunakan produk kecantikan lamarizk. Dengan cara pemijatan yang benar dan rutin akan membuat kulit wajah terlihat cantik. Segera kunjungi http://www.lamarizk.in atau tlp/wa 087854523931 bb 5354d3fc
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Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
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Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
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1. Complexity, uniqueness, and
similarity in between-bundle
choice
Manoj K. Agarwal
Associate Professor of Marketing, School of Management,
Binghamton University, State University of New York,
Binghamton, New York, USA
Subimal Chatterjee
Associate Professor of Marketing, School of Management,
Binghamton University, State University of New York,
Binghamton, New York, USA
Keywords Brand management, Decision making, Product costs, Services,
Marketing concepts, Market forces
Abstract When offering product/service bundles to customers, marketers must decide
how best to configure the bundles such that consumers do not find the bundle-choice
particularly difficult. This paper examines perceived decision difficulty in selecting from
a menu of bundles, where the bundles vary on the number of component services, the
number of unique services between competing bundles, and their perceived similarity. It
is found that larger bundles make decisions more difficult, more unique services between
the competing bundles increases decision difficulty for small, but not large, bundles and
similar bundles pose greater choice difficulty than dissimilar bundles. Implications of the
results are discussed.
Introduction
A new strategy for marketers seeking to differentiate their offers from the
competition is to bundle products and services together. Bundling poses a
new challenge to the product/brand manager as they now have to think
beyond a single brand or a single product category and visualize markets
where disparate products and services need to be combined as a single entity
and sold as a package. Indeed, bundled services appear to be rapidly shaping
the marketing landscape of the twenty-first century, with consumers, in
general, slowly getting used to the idea of bundles instead of single services
(Marketing News, 2000). Consumers can now avail of bundles in
telecommunications (e.g. phone, cable television and Internet service
(Denver Post, 2001), utility (e.g. electricity/gas services with heating and air
conditioning repair and maintenance, home appliance repair and electrician's
services), (Public Utilities Fortnightly, 1999, p. 62), or some mixture of the
two (e.g. local and long distance telephone with electric/gas services (Utility
Business, 1999, p. 72).
Keeping pace with the practice community, academic research in bundling
has examined a wide range of issues ranging from the sellers' strategic
handling of bundling (i.e. when to bundle and when not to bundle) to buyers'
evaluation of bundle value (for a comprehensive review, see Stremersch and
The Emerald Research Register for this journal is available at
http://www.emeraldinsight.com/researchregister
The current issue and full text archive of this journal is available at
http://www.emeraldinsight.com/1061-0421.htm
This research was supported by a grant from the Marketing Science Institute. A more
detailed working paper is available in MSI Report No. 02-103 (2002).
New strategy
358 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003, pp. 358-376, # MCB UP LIMITED, 1061-0421, DOI 10.1108/10610420310498795
An executive summary for
managers and executive
readers can be found at the
end of this article
2. Tellis, 2002). For example, Guiltinan (1987) presents a normative
framework to help sellers choose services for different mixed-bundling
discount forms; Eppen et al. (1991) offer sellers several guidelines to create
competitive bundles; Venkatesh and Mahajan (1993) demonstrate how a
mixed bundling strategy can be more profitable to sellers than pure
components or pure bundling strategies; Bakos and Brynjolsson (1999, 2000)
show how sellers can create ``economies of aggregation'' by bundling
information goods; Koschat and Putsis (2002) advise magazines to
``unbundle'' their readers (i.e. publish different special editions targeted to
specific geographic segments or customized electronic editions to individual
readers) so that they can extract price premiums from advertising agencies.
From the consumers' perspective, Yadav and his colleagues (Yadav and
Monroe, 1993; Yadav, 1994, 1995) study consumers' bundle-evaluation
process and find, among other things, that bundles generate greater perceived
savings than discounts on the bundle's individual items, and consumers'
bundle evaluations vary significantly depending on which item is featured as
the price leader. Recently, Gourville and Soman (2001) caution against
excessive bundling that can dampen consumption by masking the sunk costs
of the individual items within the bundle (i.e. consumers feel less sunk-cost
pressure to consume the individual items within the bundle than if the items
were purchased separately).
As bundles proliferate and consumers get better accustomed to buying
packages instead of individual products and services, research on bundling
needs to change its focus from evaluating bundles in a monadic context to
evaluating bundles in a competitive context (i.e. selecting between multiple
bundles). In a study of 100 firms that use bundling as a major component of
their selling strategy, Mercer Management Consulting identifies the ability
of bundles to ``simplify consumers' lives'' as one of the keys to successful
bundling (Ovans, 1997). Our paper, which focuses on decision difficulty in
choosing between multiple bundles, is, to the best of our knowledge, the first
to examine the psychology of choice simplification in a competitive context.
Since selecting between bundles is relatively unfamiliar to consumers
(compared to selecting between alternatives), they may be tempted to avoid
the decision altogether and fall back to the status quo (i.e. select individual
items instead of bundles) (Luce, 1998). Hence, by investigating the sources
of decision difficulty in bundle-choice, we are better suited to understand the
reason for such choice deferrals and suggest remedies to managers.
While there is a rich history of research in decision difficulty, both from the
cognitive as well as the emotional perspective (see, for example, Luce et al.,
2001), the current thinking is confined to analyzing choices between multiple
alternatives, or a single alternative (choice versus no choice), where each
alternative is a collection of attributes. In the next section, we introduce the
concept of decision difficulty in choosing between bundles, where each
bundle is now a collection of alternatives, and consumers are forced to trade
off alternatives across competing bundles
Theory and hypotheses
Perceived complexity of the bundles
Research on decision difficulty in a multi-alternative, multi-attribute setting
has generally focused on the information load or the computational difficulty
arising from processing many alternatives and/or attributes (see, for example,
Helgeson and Ursic, 1993; Payne, 1982; Payne et al., 1988). A typical
example of this type of research is a choice between two alternatives (e.g.
Consumers' perspective
History of research
JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003 359
3. automobiles), with each alternative described by multiple attributes (e.g.
price, horsepower, gas-mileage, ride comfort). Faced with increasing
information about alternatives and attributes, consumers select decision
strategies to minimize computational effort (simple heuristics or shortcuts)
(Payne et al., 1990).
Consider Scenario 1 below where the consumer faces a choice between
Bundles A and B:
Scenario 1
(1) Bundle A:
. residential telephone;
. cellular telephone;
. Internet services.
(2) Bundle B:
. television programming;
. electricity and gas services;
. residential telephone.
Scenario 1 is similar to a multi-alternative and multi-attribute decision
if the bundles (bundles A and B) are construed as the alternatives, and
the services (e.g. television, telephone, and electricity and gas in
Bundle B) are construed as the attributes. As the number of services
in each bundle increases (i.e. as the bundles become more complex),
consumers face an increasing computational challenge requiring more
comparisons of services within, as well as between, bundles. The increasing
computational challenge may, in turn, make the decision more difficult and
tempt the consumer to defer the choice (Dhar, 1996). Thus:
H1. Decisions will be perceived to be more difficult, and there is a tendency
to defer decisions higher, when there are more (compared to fewer)
services in the competing bundles.
Number of unique services between bundles
The premiss that computational difficulty increases with the number of
services holds as long as all services are unique to the two bundles. In
Scenario 1, bundles A and B have one common component (residential
telephone) and two unique services, and thus require four inter-bundle
comparisons (TV-cell phone, TV-Internet, electricity and gas-cell phone,
electricity and gas-Internet).
Each inter-bundle comparison may lead to an ``alternative conflict''
(e.g. how to trade off between the benefits of television with cell phone)
leading to preference uncertainty, ambivalence, and longer decision times
(Fischer et al., 2000). With fewer unique components, the number of
comparisons, and thereby such alternative conflicts, should be lessened. Hence:
H2. Decisions will be perceived to be more difficult, and there is a tendency
to defer decisions higher, when there are more (compared to fewer)
unique services between the competing bundles.
Similarity/dissimilarity between competing bundles
Past research suggests that similarity between two alternatives increases with
the number of attributes common to (or shared by) the alternatives, and
Computational challenge
Common component
Similar alternatives
360 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003
4. decreases with the number of features unique to each attribute (Tversky,
1977). Choosing between similar alternatives is difficult, as consumers need
to expend more cognitive effort to determine differences between the
alternatives (Shugan, 1980; Cooper-Martin, 1993). Alternatively, when
alternatives share the same features, they are typically compared at the
feature levels (e.g. comparing two microwave ovens on brand name, wattage,
size and warranty), whereas when alternatives do not share common features,
they are compared at an abstract level (e.g. comparing the overall value of a
microwave and a vacation). Abstract-level comparisons (e.g. overall value of
the alternative) are easier, and preferable to feature-level comparisons
(Johnson, 1984; Corfman, 1991).
The above analysis, when translated to a bundle setting, implies that
selecting between similar bundles (involving feature level comparisons)
will be more difficult than selecting between dissimilar bundles
(involving abstract level comparisons). Notice that there are two distinct
issues of interest. First, what type of components (similar or dissimilar)
would consumers like to see within a bundle? Second, are decisions easier
or difficult when the consumers select between two similar bundles
relative to selecting between two dissimilar bundles? In answering the
first question, research suggests that consumers would like to see
``similar'' services bundled together. For example, Hermann et al. (1997)
find that bundles whose components are functionally related (e.g. a
centralized lock system and an alarm system) generate greater purchase
intentions than bundles with functionally unrelated components (e.g. a
centralized lock system and a sunroof). Similarly, using a conjoint
framework, Goett et al. (2000) find that consumers' willingness to pay is
highest when their electricity service is bundled with other fuels (e.g.
natural gas, propane, and oil), and lowest when their electricity service is
bundled with financing services for new electrical equipment. The focus
of our third hypothesis is not on what components consumers would like
to see within a bundle, but on the second question, i.e. the differential
decision difficulty stemming across choices between two similar bundles
and choices between two dissimilar bundles.
H3. Decisions will be perceived to be more difficult, and the tendency will
be to defer decisions higher, when choosing between two similar
bundles than between two dissimilar bundles.
Forming similarity judgments
What makes consumers view two bundles as similar or dissimilar to each
other? We suggest that there are two drivers of bundle similarity:
(1) the number of common components between the bundles, with more
common services (fewer unique services) increasing their perceived
similarity (Tversky, 1977); and
(2) the perceived similarity of the components across the bundles.
To illustrate, consider Scenario 1. There are two unique services across the two
bundles, and our contention is that their global similarity assessment will be
based on the local similarity assessments of the unique service-pairs between
them (e.g. TV-cell phone, TV-Internet, electricity and gas-cell phone,
electricity and gas-Internet; see the feature sharing model in Tversky (1977).
H4. The perceived similarity between competing bundles (global similarity)
is negatively related to the number of unique components between the
Issues of interest
Unique service pairs
JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003 361
5. bundles, and positively related to the similarities of the unique
service-pairs between the bundles (aggregated local similarities).
Methodology
We conduct our research in three phases:
(1) a focus group phase;
(2) a pre-test phase; and
(3) a survey phase.
The inputs from the first two phases gave us qualitative insights into the
problem faced by consumers in choosing from multiple bundles, insights we
use to create and refine the final survey instrument.
Focus groups
Participants. In the first phase, we ran two focus groups, with eight
participants in the first focus group and six participants in the second. The
participants came from local area residences and received $20 compensation
for about 45 minutes of their time. An experienced moderator conducted the
focus groups and kept video as well as audio records of the discussion.
Procedure. The focus groups were organized in three stages. In the first stage,
the participants were introduced to nine different residential services. The
services, selected after researching the popular press on the types of service
bundles offered by telecommunications, cable, and utility companies, were:
. residential telephone;
. cellular telephone;
. television programming;
. Internet connection;
. electricity and gas;
. home appliance repair and service;
. lawn and garden service;
. heating and cooling maintenance service; and
. plumbing services.
In the second stage, the moderator asked each participant to construct his/her
``ideal'' bundle, i.e. the services that they would like to see offered together
as a package. Thereafter, each participant discussed why she/he had selected
the specific services to put together. In the third and final stage, the
moderator described two ``similar'' bundles of telecommunications services
(bundles A and B in Scenario 2) and asked participants to imagine that they
had to choose one out of the two. The participants discussed which of the two
bundles they would select and why that decision was particularly easy or
difficult. The same procedure was followed using two dissimilar bundles
(bundles C and D in Scenario 3).
Scenario 2 (similar bundles)
(1) Bundle A:
. residential telephone;
. cellular phone;
. Internet.
Local area residences
``Ideal bundle''
362 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003
6. (2) Bundle B:
. residential telephone;
. cellular phone;
. television.
Scenario 3 (dissimilar bundles)
(1) Bundle C:
. residential telephone;
. electricity and gas;
. lawn and garden.
(3) Bundle D:
. cellular phone;
. appliance repair;
. lawn and garden.
Results. The results of the focus groups are discussed around two issues:
(1) the participants' idea of the ideal bundle; and
(2) their assessment of perceived decision difficulty when selecting between
two similar bundles and selecting between two dissimilar bundles.
When asked to construct their ``ideal'' bundle, the popular bundles
constructed by the focus group participants involved some combination of
either residential telephone, cellular, and Internet, or appliance repair,
heating and cooling, and plumbing. In combining the first group of services,
one participant remarked ``. . . a natural good combination, if at a better value
than separate'', another participant stated ``currently, my Internet access is
through the phone line'', while a third expressed ``they're both telephones,
having one bill is more convenient, only write one check per month''. In
combining the second group of services, one participant observed, ``they fit
together . . . especially as a home owner, it's easier to deal with one
company'', while another stated ``if I can rely on just one company, it's
much easier, and you create a rapport with the company, you can depend on
them''. Not all participants, however, desired service bundles. One
participant stated, ``I'm skeptical about the bundling of services, I want to
see that there are real benefits to me . . . I don't mind writing four checks
. . . you'll have to prove to me that it's a better deal, cost-wise and
service-wise'', while another said ``I don't want bundles at all . . . I don't
need a cell phone, don't need satellite TV with 300 channels, no Internet
. . . for repairs, I go to the local guy, I do the garden myself''. It appears that
our focus group consumers would like to see similar services within bundles,
services that are related or fit together.
Given a choice between two ``similar'' bundles (bundles A and B in Scenario
2), the majority agreed that Bundle A appeared more logical, with related
services, and would probably be their choice. One participant stated, ``Bundle
A seems to match better my desires/environment . . . as for Bundle B, I'm not
interested because I'm working with a satellite provider, and I don't see the
combination between that provider and my phone services at this point . . . I
don't see the tie''. A second participant stated, ``Bundle A . . . the services
relate better . . . they're all phone services . . . Internet is mostly through the
Popular bundles
Similar bundles
JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003 363
7. phone at this time. It groups better''. The participants, however, did not think
that making a choice between the two bundles would be easy, citing reasons
such as missing information about prices, customer services, and the ability of
the supplier to handle multiple services. Thus, one participant stated,
``Difficult . . . I would need to research friends and family, company, customer
service, type of contract, how to get in and out'', while another said ``Difficult
. . . I'm very picky . . . customer service is important . . . I want to receive
service in return for what I pay, I want the option to switch''.
Given the choice between two ``dissimilar'' bundles (bundles C and D in
Scenario 3), most participants expressed concern that the services did not seem
to fit together and they would not pick any one of the two. One participant
stated, ``None . . . very disparate . . . I can't imagine a company being efficient
with both phones and electric and gas, they're too different''; a second
participant observed, ``Neither . . . no relation between gas and phone'', while
a third participant expressed, ``Neither . . . how can you have a company with
expertise in all these diverse things?'' The majority of the participants agreed
that if asked to make such a choice, the decision would be very easy for them
in that they would not select any package (i.e. defer the decision). Thus, one
participant observed, ``I would stick to individual . . . they [the bundles] are not
a natural fit or combination'', while another stated, ``Easy choice . . . I
wouldn't choose either . . . no need to bundle anything''.
The results of the focus groups appear to conform to our predictions. For
example, deciding between two similar bundles appears to be difficult for
our participants. Conversely, when it comes to choosing between two
dissimilar bundles, participants seem to be adopting a global criterion (e.g.
bundles do not fit together) and easily decide not to select any bundle.
Pre-test
The focus groups identified similarity within and across competing bundles
as an important factor in consumers' bundle choice. We next conducted a
pre-test to determine the extent to which the nine services used in the focus
groups are perceived to be similar or dissimilar to each other.
Procedure. A total of 177 student participants read a brief description of the
nine residential services identified in the focus groups. The participants then
rated the similarity or dissimilarity of each of the 9
C2 or 36 pairs of service
on a nine-point scale ranging from one (very similar to each other) to nine
(very dissimilar to each other). To avoid patterned responses to a series of
similarity ratings, we interspersed filler tasks after every ten rating questions.
Analysis and results. The ALSCAL procedure in SPSS created a
two-dimensional similarity map (Figure 1). The data were treated as ordinal
matrix conditional. Both two- and three-dimensional maps were examined.
The average stress (Kruskal Formula 1) was between 0.14 and 0.18. We use
the two-dimensional map due to its ease of understandability. From Figure 1,
we see a separation of the four telecommunications services (cellular,
Internet, residential telephone, and television programming) from the other
five services that are dispersed across the two-dimensional map. In that
respect, the similarity map appears to confirm the findings of the focus group
as far as the grouping of similar services are concerned.
Survey
Creating similar versus dissimilar bundles
From Figure 1, we see a separation of the four information-related services
(cellular, Internet, residential telephone, and television programming) from the
Global criterion
ALSCAL procedure
364 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003
8. other five services. Our original intention was to develop the similar and
dissimilar bundles based on the clusters on the similarity map. However, given
that that the services appear to be dispersed across the map (i.e. multiple tight
clusters are not apparent), this is not possible. Instead, as shown shortly, we
created our own versions of similar and dissimilar bundles and, in the survey,
asked participants their perception of the similarity or dissimilarity of the
competing bundles. Thus, bundle similarity/dissimilarity is a measured
variable (instead of a manipulated variable) in our final experiment.
Varying number and uniqueness of services
Our study requires creating service bundle pairs with two, three, or four services,
and one or two unique services between them, for a total of 3 Â 2 or six decision
scenarios. Table I describes different versions of the six scenarios used in our
survey. Due to space constraints, the full details of the procedure to generate the
bundles are not discussed here and are available from the authors. Briefly, we
used eight services in a master design (appliance repair was randomly dropped
from the original set) and a mix of information and non-information related
services to generate the decision scenarios.
To illustrate, consider the first row and last column of Table I (Version 1 and
choice of four-service bundles). Participants in this condition had to select
between two competing bundles where each bundle had four services. For some
participants, the choice entailed competing bundles, each with one unique
service, i.e. selecting between a bundle of phone, cellular, plumbing, and lawn
and garden, or a bundle of television, cellular, plumbing, and lawn and garden.
Thus, phone is unique to the first bundle, and television is unique to the second
bundle. For other participants, the choice entailed two competing bundles, each
with two unique services, i.e. selecting between a bundle of phone, cellular,
plumbing, and lawn and garden, or a bundle of television, Internet, plumbing,
and lawn and garden. Thus, phone and cellular are unique to the first bundle and
television and Internet are unique to the second bundle.
Base design
Objects design, manipulating the number of components in the competing
bundles (two, three, and four), and the number of unique elements between
the competing bundles (one and two). The similarity/dissimilarity of the
competing bundles is treated as a measured variable. In an attempt to include
as many different combinations of services as possible, we created six
different versions of survey. Each participant was exposed to only one of the
Figure 1. Similarity map of nine services in pre-test
Service bundle pairs
Competing bundles
Six scenarios
JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003 365
11. six versions (any row of Table I). In order to reduce the transparency of the
``uniqueness'' manipulation, all participants rated the six scenarios in the
following order:
(1) two-component bundles with two unique components;
(2) three-component bundles with one-unique component;
(3) four-component bundles with two unique components;
(4) two-component bundles with one unique component;
(5) three-component bundles with two unique components; and
(6) four-component bundles with one unique component.
Stimuli and measures. The survey booklet comprised an introduction and six
sections (sections A through F). In the introductory page, the participants
were asked to imagine that they had recently purchased a house and
described different residential services. Thereafter, participants were asked
to read through each of the next six sections and complete the task asked of
them in each section, as described below.
Section A asked participants if they use each of the six services at present
and/or if they have used the services in the past. This section served as a
check for the perceived familiarity of the different services used in the
survey, i.e. we did not wish any particular service to be novel and unfamiliar
to the participants.
Section B required participants to rate the similarity or dissimilarity of the 15
possible pairs of the six services on a nine-point scale, ranging from one
(very dissimilar) to nine (very similar). Note that in any version the
participants were exposed to six services (and not all eight; see Table I). The
similarity ratings were used to generate similarity maps for a separate study
and thus the results are not discussed here.
Section C introduced the participants to seven different decision scenarios.
The first decision scenario served as a practice task to familiarize the
participants with the choice task. The next six decision scenarios are derived
from our design (any row of Table I). For each decision scenario, participants
imagined that their ``preferred'' firm was offering different pairs of competing
service packages. The two bundles in any pair were labeled as Package 1 and
Package 2. The participants read through the description of each pair of
packages and then performed a choice task and a ratings task. In the choice
task, participants circled one of three options: choose Package 1; choose
Package 2; or choose neither. In the ratings task, participants responded to a
nine-point scale ranging from four (disagree completely) to + four (agree
completely) measuring perceived decision difficulty (I found the decision very
difficult). Thus Section C introduces the two manipulations (number of
services in the bundle, and the number of unique services across competing
bundles) and the key dependent variables of the study (choice and ratings).
Section D of the booklet described the seven pairs of bundles one more time
and asked participants to rate the similarity/dissimilarity of the pairs on a nine-
point scale, ranging from one (very dissimilar) to nine (very similar). The
inputs from Section D are used as a measure of the perceived similarity or
dissimilarity of the competing bundles, our measured independent variable.
Finally, sections E and F of the booklet contained questions about the
participants' shopping habits and basic demographic information for sample
description purposes.
Nine-point scale
Independent variable
368 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003
12. Procedure
A list of 1,200 Broome County, NY households was obtained from
Marketing Systems Group, Fort Washington, PA. Initially, 1,020
questionnaires were mailed in March 2000, with each household randomly
receiving one of the six versions of the questionnaire. The survey included a
cover letter, which introduced the authors and the funding agency and
discussed the practical significance of the research. After a month, we made
telephone calls to the remaining 180 households on the list, informing them
of the research and soliciting their participation in the survey. In all, we
received 159 completed surveys, a response rate of about 13 per cent. Since
about 20 per cent of the addresses on the list were either incorrect or the
residents had moved, the true response rate is closer to 17 per cent. The
number of respondents in the six versions of the questionnaire ranged
between 24 and 30.
Sample characteristics
Our sample is 59 per cent male, a mean age of 53 years, a median household
income between $40,000 and $55,000, and 79 per cent are house owners
(mean ownership of 20 years). About 48 per cent of the sample use a dial up
modem, 19 per cent use a cable modem, and a very small percentage a DSL
line. All have residential telephone, cable television, and use electricity and
gas services, 80 per cent have used heating and cooling services, 56 per cent
have used a plumbing service, 37 per cent use a cellular phone and 4 per cent
have a satellite dish.
Analysis and results
Base model
We ran an ANOVA with varying numbers of components (two, three and
four), numbers of unique components (one and two) and perceived similarity
of the bundles (measured on a one to nine similarity/dissimilarity scale) as
the within-subjects factors. The dependent variables in the ANOVAs were:
. perceived difficulty measured on a nine-point agree-disagree scale (``I
found the decision to be very difficult''); and
. decision deferral, a dichotomous (0, 1) variable that was assigned a value
of one if participants indicated that they wished to defer the decision by
not choosing any of the two packages described in the decision scenario.
Number of services. H1 suggests that decisions will be more difficult (and
the tendency to defer decisions stronger) when there are more (compared to
fewer) services in the competing bundles. As predicted, there was a
significant main effect of the number of services on decision difficulty
(F2,275 = 5.08, p < 0.01; XTwo Services = 2.87, XThree Services = 2.97,
XFour Services = 3.38), as well as decision deferral (F2,283 = 19.19, p = 0.00;
XTwo Services = 0.24, XThree Services = 0.28, XFour Services = 0.45).
Number of unique services. H2 suggests that decisions will be more difficult
(and the tendency to defer decisions stronger) when there are more
(compared to fewer) unique services across the two competing bundles. H2,
however, was not supported. The main effect of uniqueness for decision
difficulty was not significant (XOne Unique Service = 3.06,
XTwo Unique Services = 3.08; F1,37 < 1, ns). The impact of uniqueness on
decision deferral approached statistical significance, but in a direction
opposite to that predicted. The tendency to defer a decision was stronger
when there was one unique service between the competing bundles
Household income
Main effect
JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003 369
13. (XOne Unique Service = 0.34) compared to two unique services
(XTwo Unique Services = 0.31; F1,141 = 3.81, p = 0.05).
There was a significant interaction between uniqueness and total number of
services on decision difficulty (F2,275 = 3.49, p = 0.032). Uniqueness increased
decision difficulty for small (two-service) bundles (XOne Unique Service = 2.66,
XTwo Unique Services = 3.07; F1,143 = 3.81, p = 0.053), but not for large bundles
(for three-service bundles: XOne Unique Service = 3.09, XTwo Unique Services = 2.86;
F1,142 = 1.87, ns; for four-service bundles: XOne Unique Service = 3.44,
XTwo Unique Services = 3.32; F1,140 < 1, ns). Notice that in two-service bundles,
the ``two-unique'' condition results in bundles with no common services
between them, a feature that never holds in the case of the bigger bundles. One
speculation, therefore, is that uniqueness, in general, will not affect decision
difficulty unless it results in competing bundles that have no common services
between them. A second speculation is that respondents give up on item-by-
item comparison, a necessary condition for identifying unique services, and
just assess the overall value of bigger bundles.
The main effect for decision deferral is harder to explain. Why should the
tendency to delay the decision be more when there are fewer unique services
between bundles? After all, fewer unique services should make the bundles
easier to compare. One speculation is that decision deferral in our case may
not be perfectly symptomatic of decision difficulty. For example, in focus
groups with participants, one finding was that choosing to defer a decision
was often not equated to a difficult choice, but rather a very easy choice
where the participants knew that they did not want either option.
Similarity between bundles. H3 suggests that decisions will be more difficult
(and the tendency to defer decisions stronger) when choosing between two
similar bundles (compared to two dissimilar bundles). Participants'
self-reports of decision difficulty were positively correlated with the
perceived similarity of the competing bundles (r = 0.086, p = 0.01), indicating
that the more similar the two bundles, the more difficult the decision. The
low R2
suggests that there are other variables besides similarity that drive
decision difficulty. The correlation between decision deferral and perceived
similarity, however, was not significant (r = ±0.031, p = 0.344).
Similarity judgments. H4 suggests that perceived similarity between competing
bundles is negatively related to the number of unique components between the
bundles and positively related to the local similarities of the components
between bundles. To test our hypothesis, we ran a regression where
participants' reported similarity score of the competing bundles served as the
dependent variable, with the number of services in each bundle (NUMBER),
the number of unique services between the two bundles (UNIQUE), the
average of the perceived similarities of all the unique service-pairs between the
two bundles (PAIRSIM), and the two interaction terms involving PAIRSIM
(PAIRSIM*NUMBER, and PAIRSIM*UNIQUE) as the predictors.
The fit of this model is reasonable (R2
= 0.15). As predicted, more unique
components decrease the perceived bundle similarity (
14. = ±0.83, p < ±
0.01). Consistent with our hypothesis, the variable PAIRSIM is positively
related to bundle similarity (
15. = 0.62, p < 0.01 ), and suggests that
similarities of the services between the bundles (local similarities) affects
the perceived similarity of the bundles (global similarity). Unexpectedly,
bigger bundles were judged to be more similar than smaller bundles
(
16. = 0.69, p < 0.01). One reason could be that, for bigger bundles,
consumers give up on item-by-item comparisons and evaluate the bundles
Significant interaction
Decision deferral
Unique components
370 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003
17. as a whole (e.g. the two bundles are quite similar to the extent that they
both serve my needs well).
Discussion
Summary and implications
As bundles proliferate and consumers get better accustomed to the concept
of buying packages instead of individual products and services, bundle
flexibility, or the ability for consumers to choose their preferred bundle will
become the key issue (Wireless Review, 2000). This flexibility can take
two forms:
(1) sellers offer an aÁ-la-carte selection, buyers estimate their reservation
price and for that price select the products they wish to bundle together
(i.e. the buyer, not the seller, construct the bundle); or
(2) sellers offer several bundles, similar in spirit to Macdonald's value meals
(e.g. order ``Number One'' if you want a Big Mac, fries, and a soft
drink), and consumers select their most preferred bundle from this menu.
In this paper we investigated the second form of bundle flexibility,
contending that the best menu of bundles, from the consumers' perspective,
is one that facilitates an easy selection of their preferred bundle. Thus, our
focus is not so much on whether or not a specific bundle is selected. Rather,
our focus is to recognize the features of the decision task that facilitates
decision making. Based on the literature on multi-alternative, multi-attribute
decision making, as well as the inputs from two focus groups, we
investigated the impact of three factors on the consumers' perception of
decision difficulty in bundle choice: the number of services within each
bundle, the number of unique services between the competing bundles, and
the perceived similarity between competing bundles.
The first factor, the number of services in competing bundles, not
surprisingly, increases consumers' perception of decision difficulty. The
finding poses an important challenge for the service managers. To
differentiate their bundles from their competition, managers may be
tempted to pack as many products or services in their bundle as possible.
However, as our results show, if all managers follow the same strategy by
offering ``large'' bundles, the consumers will find the selection process
very difficult and may end up not selecting any bundle at all. The reason
for this reluctance could stem from the intractability of making multiple
comparisons of the alternatives between the competing bundles.
Alternatively, it could stem from the consumers' unwillingness to trust a
single service provider to efficiently provide the many disparate services,
or the sticker shock that they anticipate experiencing when the time
comes to pay for one big bundle.
The second factor, the number of unique services between bundles, appears
to affect the consumers' perceived decision difficulty in choosing between
competing bundles only for small (two-service) bundles. However, it is not
clear whether it is uniqueness in general, or one particular form of
uniqueness (that leads to zero overlapping components across the competing
bundles) that contributes to decision difficulty.
The third and final factor, perceived similarity between competing
bundles, is found to have a weak (but significant) relationship with
decision difficulty. Choosing between similar bundles is more difficult
than choosing between dissimilar bundles. Although the survey results
point to a weak relationship, the focus groups appear to think that
Bundle flexibility
Perceived difficulty
JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003 371
18. similarity or ``relatedness'' is an important issue driving consumers'
comparison between competing bundles. A related question, then, is how
are these similarity judgments formed in the first place. Our results
suggest that such judgments are probably formed when consumers
compare the unique services across the competing bundles one pair at a
time. In addition, bigger bundles are perceived to be more similar to each
other compared to smaller bundles, making the choice decision difficult.
Service providers, therefore, need to offer small bundles that are not
perceived to be similar to one another, or to present them in a way that
highlights differences between them.
Some caution and future research
In focusing our attention on decision difficulty, we need to be cautious of
two things. First, creating menus that provide an easy decision
environment for consumers may not always be the most profitable
strategy for the marketer. For example, the surest way of facilitating a
decision is to offer a dominating bundle (i.e. a bundle that contains all the
consumers' preferred services at a discount), but the service provider may
lose money on every bundle that is sold. Second, just making the decision
less difficult does not necessarily mean that the consumer is better off
than before. For example, selecting between two bundles, one that is
undesirable in all respects and the other only slightly less so, may be quite
easy, but that does not mean that the consumer will be happy with the
final choice. However, as we have shown, decision features such as task
complexity and similarity between the choice options, found to affect
decision difficulty in multi-attribute and multi-alternative choices, can be
readily adapted to the bundling context as well. In that respect, our work
should help managers present choices that simplify the consumers'
decision-making process without necessarily sacrificing the seller's
profitability, or reducing consumer welfare.
Although we have considered service bundles, our framework is sufficiently
broad to encompass bundles in general. For example, common bundles that
consumers encounter almost routinely in their lives include fast-food meal
bundles (main meal, side orders, and a drink), photographic equipment
bundles (camera body, one or more lenses, and in some cases accessories and
supplies such as flashes, tripods, and film) and personal computer bundles (a
processor, a monitor, and occasionally peripherals such as printers and
scanners). Future research needs to address the generalizability of our
findings to such common bundles as well.
A second consideration for future research will be to assess how consumers
respond to different bundling contexts. For example, in this paper we
considered bundles where the separate services were quite easy to identify. In
some cases, bundles are more subtle (e.g. programs that come bundled together
on the computer's hard drive, or functions such as streaming, downloading and
burning that are bundled with online music sharing services). In other cases,
bundling entails significant strategic implications. For example, should
personal TV (e.g. TiVo), which allows you to play, pause, and re-play live
television broadcasts, be marketed as a standalone service, or should it be
bundled together into a set-top box that provides cable television or satellite
television? Understanding the context effects on bundle evaluation should
significantly increase our knowledge in this area.
A third challenge for marketers will be to develop personalized bundles of
products and services, if the assumption is that the market for service bundles
Caution
Future research
372 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003
19. will be niche segments requiring highly tailored services. For example, for
energy related bundles, residential consumers are more likely to be receptive
to a package that might consist of heating and air conditioning repair and
maintenance, home appliance repair and electrician's services. Small business
customers, on the other hand, would probably like power quality consulting
and energy audits built into their bundles. Future research may wish to address
how best personalization can be made to bear on the number and variety of
bundles that service providers are going to offer in the marketplace.
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374 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003
21. Executive summary and implications for managers and
executives
To bundle or not to bundle?
Imagine some firm makes you an offer to bundle together all the products
and services you need to run your home ± utilities like gas, electricity and
water; telecommunications, entertainment, maintenance, gardening, etc.
Seem like a good offer? Well think about it for a few seconds and you will
appreciate the difficulties. You have a swimming pool ± does the offer
include its cleaning and maintenance? Can you vary the bundle to include or
exclude particular services ± you like to do your own garden? And how does
the offer of everything on a single bill stack up in terms of cost and service
quality?
The bundling of services makes superficial sense to the consumer with the
appeal of one supplier and the promise that this will provide savings in time
and money. But the reality is more complicated since we are no longer
judging between suppliers of the individual services but between varied
bundles of services. As consumers we face a more complicated choice
± instead of a supplier for the phone and a suppliers for the television we
face a choice between mixes of suppliers. The electricity company wants to
sell us telephony services as does the cable TV firm. And the gas company
can provide our water plus services such as emergency plumbing and garden
maintenance.
Since we would not buy telephony from more than one supplier, we face a
problem choosing between bundled services that include telephony plus a
range of other services. For many, the temptation may be to sack it all and
buy the phone service from a specialist company. Agarwal and Chatterjee
suggest that this may well be the case since, when faced with ``. . . increasing
information about alternatives and attributes . . .'', consumers ``. . . select
decision strategies to minimize computational effort''. Working out whether
the bundled service provides value-for-money is too much like hard work so
we opt for the simple choice and stick with single suppliers for services.
This situation is real but it does not stop organizations seeking to increase
revenues and market penetration by adding services to create bundles. And,
the breaking down of competitive barriers between utilities through
deregulation and privatization has accelerated this process. The challenge
for the designers of product and service bundles is to create groups that do
not put off consumers.
There must be sense to the bundle
The first rule of bundling must be to ask whether there is any real connection
between the core product (e.g. gas) and the products or services with which
we intend to bundle this core product. The link between gas and electricity,
for example, is well established and makes some sense to the consumer
(especially where there is an extensive mains gas system). And, consumers
are able to make a judgment in choosing between alternative suppliers of gas
and electricity together as well as between these suppliers and those
supplying only one or the other.
For the supplier of gas and electricity the challenge is now to add further
services or products to the existing offer. And, given this choice, do we opt
for supplying more things that enter the home through pipes or wires
(telephones, television, water, etc.), things that run on gas and electricity
(appliances and financing for appliances) or services that maintain the
JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003 375
This summary has been
provided to allow managers
and executives a rapid
appreciation of the content
of this article. Those with a
particular interest in the
topic covered may then read
the article in toto to take
advantage of the more
comprehensive description
of the research undertaken
and its results to get the full
benefit of the material
present
22. property (e.g. plumbing and electrical work)? Each option has some logic,
but where the consumer is faced with choices from different organizations
presenting each of these options the decision becomes harder. And we may
want some but not all of the services in a given bundle.
Agarwal and Chatterjee suggest that firms should begin to look at flexibility
in bundles. The authors give two options here ± aÁ -la-carte selection or
multiple bundles. In the first case the consumer selects a combination from a
menu of options ± a self-created bundle, while in the second case the range
of bundles is set up and the consumer selects one option from many. It seems
that the only constraints preventing aÁ-la-carte approaches lie on the firm's
operation efficiency. And, the more products and services we include in the
potential bundle the more different bundles are bought and the more difficult
it is for the firm to manage a complex system.
Despite these problems it is likely that there is ability to present the
consumer with a menu from which to select. And this change presents a
problem in terms of positioning. Since we can imagine a situation where an
electricity distributor has customers who buy gas and telephones but not
electricity, that firm ceases to be an electricity company and becomes a
supplier of domestic services. At present this is not the case (I buy my gas
from Southern Electricity), but there is a chance that firms will begin to focus
more on the totality of service to the household rather than on the efficient
supply of a commodity product. We also need to ask whether consumers will
continue to seek out the cheapest supplier or will opt for good service and a
minimum of hassle.
At all levels the bundling of services will become increasingly important for
many firms, either because of new competition or else through the demands
of consumers for products and services to be presented in a form that allows
the consumer to create (or simply to buy) a bundle of these products and
services. Agarwal and Chatterjee have, to some extent, opened up Pandora's
box by arguing for a more flexible approach to the bundling of goods and
services ± firms would be wise to examine the challenge this presents before
they find market share drifting off to competitors they never anticipated.
(A preÂcis of the article ``Complexity, uniqueness, and similarity in
between-bundle choice''. Supplied by Marketing Consultants for Emerald.)
376 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 12 NO. 6 2003