Abstract:

The majority of the existing consumer-facing research on bundling has been on the processing of bundles, mainly from a mental accounting or prospect theory standpoint. On the other hand, the variables that may influence customers' choice for bundles over individual products have been the subject of little investigation. The possibility of a decrease in search and assembly expenses is one of these factors that this article discusses. The authors demonstrate, using exploratory interviews and two lab studies, that consumers, especially those with lower information processing motivation, prefer bundles when choosing them would minimise search effort.

Description:

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