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The Price Bundling of Services: A Normative Framework

Joseph P. Guiltinan

Professor of Marketing, College of Business and Economics, University of Kentucky.

Journal of Marketing 1987

As product lines have broadened in many industries (particularly service industries), the use of mixed price bundling has increased. In mixed price bundling, a firm offers its customers the choice of buying one or more products/services individually or of buying a “bundle” of two or more products or services at a special discount. The author presents a normative framework for selecting appropriate types of services for different mixed-bundling discount forms. The framework extends the economic theory of bundling (which historically has been applied to tie-in sales) to permit explicit consideration of different types of complementarity relationships and strategic marketing objectives.

DOI
10.1177/002224298705100206
Volume
51 (2)
Pages
74-85
Language
en
Export
BibTeX
Sources
crossref openalex