Choosing options for products: the effects of mixed bundling on consumers’ inferences and choices

For product categories such as cars, computers, vacation packages, and new homes, consumers usually choose not only the product itself, but also various options for the product. Sellers decide how to present these options to consumers, and they often sell options both individually and in bundles (mixed bundling). In this research, we examine how mixed bundling affects consumers’ inferences about the options and choices among the options. We demonstrate that as long as the seller’s motives for bundling options are not perceived to be negative by consumers, options offered both individually and in bundles are perceived to be more important and are more likely to be chosen than options offered only individually.