A Study on Two-Stage Customized Bundling with Consideration of Customer Heterogeneity and Self-Selection

• Main Authors: Guan-JinWu, 吳冠瑾
• Other Authors: Yeu-Shiang Huang
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/98658082748955999956

碩士 === 國立成功大學 === 工業與資訊管理學系 === 104 === The rapid growth of commerce and intense product competition enable firms to use various promotion strategies. Bundling strategies have been extensively used in practice. Firms combine two or more products into a bundle and sell bundles at a discounted price to enhance customers’ willingness to purchase products. This study proposes a two-stage customized bundling model, in which a seller first determines the product categories for bundling and allows consumers to select their products from each category with multiple products based on their preferences. Consumers are allowed to select one main product with the greatest perceived value at the first stage. At the second stage, consumers consider the associations between the main and add-on products and then select the add-in product. This study considers the effects that consumer heterogeneity and different product factors have on the two-stage customized bundling strategy with the aims of maximizing the firm’s profit and consumers’ perceived utility. The obtained results indicate that the customized bundling strategy is beneficial for sellers when the degrees of preferences sensitivity for the main and add-in products are both high. Moreover, the profit of customized bundling strategy is positively correlated with product valuation. This study also analyzes the differences between each strategy and uses numerical examples to investigate the other related factors.