Strategic Bundling of Products and Prices: A New Synthesis for Marketing
Gerard J. Tellis
University of Southern California - Marshall School of Business, Department of Marketing
Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)
Journal of Marketing, Vol. 66, p. 72, January 2002
Bundling is pervasive in today's markets. However, the bundling literature contains inconsistencies in the use of terms and ambiguity about basic principles underlying the phenomenon. The literature also lacks an encompassing classification of the various strategies, clear rules to evaluate the legality of each strategy, and a unifying tramework to indicate when each is optimal. Based on a review of the marketing, economics, and law literature, this article develops a new synthesis of the field of bundling, which provides three important benetits. First, the article clearly and consistently defines bundling terms and identifies two key dimensions that enable a comprehensive classitícation of bundling strategies. Second, it formulates clear rules for evaluating the legality of each of these strategies. Third, it proposes a framework of 12 propositions that suggest which bundling strategy is optimal in various contexts. The synthesis provides managers with a framework with which to understand and choose bundling strategies. It also provides researchers with promising avenues for further research.
Number of Pages in PDF File: 18
Keywords: Bundling, Marketing, StrategyAccepted Paper Series
Date posted: May 31, 2006
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