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The presence of emotional factors: An empirical exploration of bundle purchasing process

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  • Mikkonen, Karri
  • Niskanen, Hanna
  • Pynnönen, Mikko
  • Hallikas, Jukka

Abstract

While the telecommunications industry is in the process of introducing bundles that cover pricing, services, and content, several risks remain to be clarified and avoided. In this paper, we reviewed the literature on the motives behind the consumer׳s decision to purchase a bundle and found that holistic frameworks of purchasing factors, especially in bundle purchasing, are rare. To reach a more comprehensive framework, we examined the bundle purchasing process through an empirical study that incorporates old and new elements in the purchasing of bundled services. Starting with the customer׳s concerns in the purchasing process, we widened the scope to include considerations of usage convenience and life-cycle costs related to bundles, and we covered various other potential open question specific to bundling. By means of exploratory factor analysis, following the K–1 rule, we extracted eight factors and gave them preliminary names. Moreover, we conducted a linear regression analysis on how these eight factors influence the customer׳s willingness to buy a bundle service. Therefore, these factors can serve as a framework for further studies on the bundle purchasing process.

Suggested Citation

  • Mikkonen, Karri & Niskanen, Hanna & Pynnönen, Mikko & Hallikas, Jukka, 2015. "The presence of emotional factors: An empirical exploration of bundle purchasing process," Telecommunications Policy, Elsevier, vol. 39(8), pages 642-657.
    • Handle: RePEc:eee:telpol:v:39:y:2015:i:8:p:642-657
    DOI: 10.1016/j.telpol.2015.05.003
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    2. Kim, Moon-Koo & Park, Myeong-Cheol & Lee, Duk Hee & Park, Jong-Hyun, 2017. "Determinants of the subscription to bundled services and their effect on customer retention in the Korean communications sector," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168501, International Telecommunications Society (ITS).
    3. Kim, Moon-Koo & Park, Myeong-Cheol & Lee, Duk Hee & Park, Jong-Hyun, 2019. "Determinants of subscriptions to communications service bundles and their effects on customer retention in Korea," Telecommunications Policy, Elsevier, vol. 43(9).
    4. Yu, Eun & Jung, Jaemin, 2018. "Towards Quadruple-Play Service: Both Individual and Household Level Analyses on Mobile Bundle," 29th European Regional ITS Conference, Trento 2018 184972, International Telecommunications Society (ITS).
    5. Howell, Bronwyn E. & Potgieter, Petrus H., 2019. "Bagging bundle benefits in broadband and media mergers: Lessons from Sky/Vodafone for antitrust analysis," Telecommunications Policy, Elsevier, vol. 43(2), pages 128-139.

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