Social bundling: A novel method to enhance consumers’ intention to purchase online bundles |
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| Institution: | 1. Sprott School of Business, Carleton University, 1125 Colonel By Drive, Ottawa, Ontario, Canada K1S 5B6;2. DeGroot School of Business, McMaster University, 1280 Main Street West, Hamilton, Ontario, Canada L8S4M4;1. School of International Business Administration, Shanghai University of Finance and Economics, Shanghai 200433, China;2. Monash Business School, Monash University, Caulfield East, VIC 3145, Australia;1. Monash Business School, Monash University, Level 5, Building S, Caulfield Campus, 26 Sir John Monash Drive, Caulfield East, VIC 3145 Melbourne, Australia;2. Monash Business School, Monash University, Level 11, Building 20 (Menzies Building), Clayton Campus, Wellington Rd, Clayton, VIC 3168 Melbourne, Australia;3. Griffith Business School, University of Griffith, Gold Coast Campus, QLD 4222, Business School (G.42) Room 7.07, Brisbane, Australia;1. Department of Marketing, College of Business Administration, Georgia Southern University, P.O. Box 8154, Statesboro, GA 30460, United States;2. Department of Marketing, College of Business, James Madison University, 421 Bluestone Dr. MSC 0205, Harrisonburg, VA 22807, United States |
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| Abstract: | Bundling in retail has been argued to improve sales volume and speed, which can improve retailers’ operation performance. However, recent research finds that the purchase quantity requirement in traditional bundling deters non-buyers from becoming buyers. This paper proposes “social bundling,” as a novel method that alleviates the quantity requirement while satisfying the bundling benefits for consumers and retailers. We empirically test a theoretical model that explains the advantages and disadvantages of social bundling vis-à-vis traditional bundling in influencing consumers’ intentions to purchase in bundles. We conclude that social bundling outperforms traditional bundling in driving intention to purchase in bundles. |
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| Keywords: | Bundling Consumer control Intention to purchase Field experiment |
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