Impact of bundling on low involvement vs high involvement products

Abstract

Bundling is a technique used to sell multiple products as a single unit with single price point. We can see several examples of product and service bundling around us like bundled toothbrush along with toothpaste, Amazon prime subscription for prime delivery, Kindle, Prime Video, music etc. There are numerous advantages attached to the bundling technique which involves increase in average order value, decrease in marketing & distribution cost. Interesting thing observed is the application of bundling technique to low/high/mix of both low and high involvement products. Consumer attitude towards the different involvement products vary greatly. How the bundling technique goes hand in hand with both the types of products was an interesting study. The present CCS project aims to examine the purchase intention when it comes to the level of involvement which customer associate with the bundled products. Following recommendations were suggested based on the research: 1) Strategies should be formulated taking into consideration different level of involvement of the individual products which is there in bundle. 2) Also, the purchasing behaviour varies a lot when we see for male and female. This needs to be taken care of. Female respondents prefer bundle products more but within a certain price range. There is a need to drive them to increase their price level. 3) In almost all the cases, we observed that the most important factor to drive the demand of bundled items is savings and discounts. So, customers should be made aware that how much they are saving while doing the purchase of bundled items.