The Benefits of Bundling Strategies

Schmalenbach Business Review, Vol. 52, April 2000

23 Pages Posted: 11 Jun 2002

See all articles by Bernd Skiera

Bernd Skiera

Goethe University Frankfurt

Torsten Olderog

AKAD Fachhochschule Pinneberg; University of Witten/Herdecke

Abstract

This paper analyzes the effects of three bundling strategies - unbundling, mixed bundling, and pure bundling - on profit and sales, using a simulation study based on a model by Schmalensee (1984). The analysis shows under what conditions which strategy is the most profitable, how large the profit and sales differentials are for each strategy, and what characteristics the corresponding price structures have. Based on our results, we explain the differences observed in the study and derive a set of implications for practical price structuring.

Keywords: Price Bundling, Pricing

Suggested Citation

Skiera, Bernd and Olderog, Torsten, The Benefits of Bundling Strategies. Schmalenbach Business Review, Vol. 52, April 2000, Available at SSRN: https://ssrn.com/abstract=310343

Bernd Skiera (Contact Author)

Goethe University Frankfurt ( email )

Theodor-W.-Adorno-Platz 4
Frankfurt, 60323
Germany
+49 69 798 34640 (Phone)
+49 69 798 35001 (Fax)

HOME PAGE: http://www.skiera.de

Torsten Olderog

AKAD Fachhochschule Pinneberg ( email )

Am Rathaus 10
Pinneberg
Germany
04101-855833 (Phone)

HOME PAGE: http://www.akad.de

University of Witten/Herdecke ( email )

Alfred-Herrhausen-Stra├če 50
D-58448 Witten
Germany
++49-2302/926-513 (Phone)
++49-2302/926-555 (Fax)

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