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Bundling as a new product introduction strategy: The role of brand image and bundle features

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  • Sheng, Shibin
  • Pan, Yue

Abstract

Marketers can bundle an unknown brand with a strong brand as a new product introduction strategy. Drawing upon the categorization theory and the elaboration likelihood model, this study examines how a new brand can benefit from bundling with a strong brand. The results of two studies indicate that consumers’ quality perception of a new brand will be affected by the brand image of a bundle partner, and this effect is moderated by the bundle forms and the complementarity of bundle components. Academic and managerial implications of these findings are presented, along with suggestions for further research.

Suggested Citation

  • Sheng, Shibin & Pan, Yue, 2009. "Bundling as a new product introduction strategy: The role of brand image and bundle features," Journal of Retailing and Consumer Services, Elsevier, vol. 16(5), pages 367-376.
    • Handle: RePEc:eee:joreco:v:16:y:2009:i:5:p:367-376
    DOI: 10.1016/j.jretconser.2009.04.003
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    8. Reeti Agarwal, 2018. "Indian Customers’ Attitude Towards Bundling: A Basis for Classification and Targeting," Global Business Review, International Management Institute, vol. 19(2), pages 510-531, April.
    9. Khandeparkar, Kapil, 2014. "The role of complementarity and partner brand price level in new product introduction strategy using bundle offers: A study on the quality perception of bundle components," IIMA Working Papers WP2014-01-07, Indian Institute of Management Ahmedabad, Research and Publication Department.
    10. Khandeparkar, Kapil, 2014. "The role of complementarity and partner brand price level in new product introduction strategy using bundle offers: A study on the quality perception of bundle components," Journal of Retailing and Consumer Services, Elsevier, vol. 21(6), pages 992-1000.
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