Implications of the presentation of prices and price discounts in the context of price bundling

• Applicant: Professor Dr. Bernhard Baumgartner
• Subject Area: Accounting and Finance
• Term: from 2013 to 2015
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 243242410

While price bundling is frequently used by marketers, a review of the literature on behavioral pricing in the context of price bundling reveals some research gaps.In this project two of these research gaps will be addressed.In the first part of the project, the impact of odd and even prices for the bundle components as well as for the total price of the bundle on reference prices and preferences for the bundle in question will be analyzed.The second subproject aims on investigating the effects of granting a price discount on a product offered within a bundle on the reference price of this product. Moreover, it will be examined, if and to what extent the reference price for a particular product offered in a bundle may be reduced if a discount is given on the total bundle-price or on the price of another product within the bundle.

• DFG Programme: Research Grants