Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Business
The Effects Of Price Bundling On Consumer Evaluations Of Product Offerings, Michael D. Johnson, Andreas Herrmann, Hans H. Bauer
The Effects Of Price Bundling On Consumer Evaluations Of Product Offerings, Michael D. Johnson, Andreas Herrmann, Hans H. Bauer
Michael D. Johnson
The bundling of multiple products or components at a set price has become a popular marketing strategy. Although little is known of how bundled price information should be presented to consumers, mental accounting principles provide guidelines. These principles suggest that more positive evaluations should result from bundling or integrating component prices into a single price and debundling or segregating component discounts into a set of discounts. A study is reported in which consumers were presented an offer for an automobile and then asked to evaluate their satisfaction with the offer, likelihood of recommending, and likelihood of repurchasing the brand. The …
Growth Through Product-Sharing Services, Michael D. Johnson, Andreas Herrmann, Frank Huber
Growth Through Product-Sharing Services, Michael D. Johnson, Andreas Herrmann, Frank Huber
Michael D. Johnson
The authors argue that product-sharing services, where companies offer customers the use of a physical product on a limited basis at a lower cost, offer an overlooked opportunity for growth. The primary advantage of product-sharing services is that they leverage a firm’s core product development and production capabilities to expand their portfolio of offerings and market segments. A framework is developed for distinguishing likely candidates for product sharing from unlikely candidates based on product, customer, and company-strategy considerations. An empirical study of a new car-sharing service at Daimler-Benz is then used to illustrate the development of such a service, its …