Product Bundling Model within A Customer Value-driven

• Main Authors: Kuei-Feng Chang, 張魁峯
• Other Authors: Tsuen-Ho Hsu
• Format: Others
• Language: en_US
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/g535gd

博士 === 國立高雄第一科技大學 === 管理研究所 === 96 === In the previous literatures, many researchers have been interested in issues of how customers are affected by price information and view product bundles as a pricing tool for promotion. However, besides price, if enterprises could understand customers’ preferences based on a concept of customer value, the results will help manufacturers and marketers to focus on customers’ needs in planning components of bundles, and also enhance the competitive advantages of bundle itself. Thus, an integrated bundle (cosmetics bundles) has been chosen in this research as an empirical case to develop a “Product Bundling Model within A Customer Value-driven”, in order to provide a systematic evaluation method, and strategies for improvement, of product bundles, to avoid the waste incurred in extensive trial and error in marketing. To develop a successful product bundling model, this research begins with constructing the hierarchical customer value framework of cosmetics bundles by a means-end chain. Next, applying a fuzzy analytic network process, the preferences of product attributes of cosmetics bundles is explored. Thirdly, the competitive evaluation of three cosmetic bundles (Shiseido—Bundle A, Lancôme—Bundle B, and SKII—Bundle C) is completed in order to find out the relative strengths and weaknesses of bundles. Lastly, the quantitative method—house of bundling—is developed for improving product bundling. The advantages of this method are not only highlighting the major product attributes that concern customers, but also indicating those components of bundles which need to be improved. The main results, implications and contributions of this research are as following. (1) A valuable cosmetic bundle should provide functional value as the first priority and transaction value plays a minor role in customer value. Concerning customer preferences, “cleaning”, “moisture skin”, “firming”, “sun protection”, “revitalizing”, “anti-phlogistic”, “natural components”, “certification”, “word-of-mouth” and “reasonable price” are the more preferred product attributes. (2) In planning the components of bundle, lotion is the first item to put in the bundle, followed by essence, day & night care, eye cream, and cleanser. To reduce the gaps between Bundle A with competitors, “cleaning”, “sun protection” and “moisturized” are the top 3 product attributes that need to be improved. In addition, “cleanser” and “eye cream” need to be added to Bundle A in the bundle planning. (3) Marketers should focus on customer preferences for their communication strategies of bundles. Bundles could concentrate on a specific issue and utilize interaction among consequences to combine a series of benefits for customers. Even though cosmetics bundles provide the complementarity in cosmetology; marketers need to link this to compatibility and safety to convince customers that purchasing a bundle of the same brand is necessary. (4) The inner dependency represents the deliberating process of customers. Marketers could utilize the results of inner dependency in communication strategies and help customers to make decisions. To improve and/or enhance the competitive capability, the manufacturers could improve product attributes of components. The focus of effort should refer to the high weight factor of PAs and high improvement ratio of CoB. (5) Because evaluators have personal opinions, and may simplify the evaluation process in the real world, the holarchy model (with feedback loop) is an appropriate format in the alternative evaluation. Especially when the difference between alternatives is slight, the evaluation by the holarchy model could provide a clearer ranking of priority and a better fit of information to make decisions.