Factor of Escalation of Consumption in Price Bundling of Services: The Concideration of Satisfaction and Sunk Costs

• Main Authors: Chung-Lin Toung, 董重麟
• Other Authors: Hsuan Hsuan Ku
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/68410420360607718804

碩士 === 東吳大學 === 國際貿易學系 === 92 === Price bundling is the sale of two or more separate products and/or services as a package at a discount. In services, the practice of marketing a single package for a special price and granting customers the rights to consume stepwise has been pervasive. The rationale for price bundling of services is to lock in customers, and deny them to competitors. This article outlines the principle techniques that service providers adopting to enhance customers’ tendencies of escalation of consumption by taking their perception into account. First, service providers can strengthen the benefits linkage among different phases of price bundling of services to manifest sunk costs and the effects on repurchase intentions. Second, designing guarantee utility to reinforce the decision reversibility. Customers’ regrets, therefore, could be decreased by this way. Third, the reference point for the evaluation of services bundling was built on the basis of inner/outer performance. By which to examine the relationship among satisfaction, regret and repurchase intention, and to increase the perceived value of customers for services bundling. For these purpose, through experimental design, we manipulate benefits linkage, guarantee utility and inner performance and outer performance, and incorporate in sunk costs, decision reversibility, regret, and satisfaction as endogenous variables to explore their influence on repurchase intentions. All hypotheses are supported by the favorable test results, and we have showed the influence of satisfaction on repurchase intention is larger than the influence of sunk costs does in price bundling of services.