Preference between Individual Products and Bundles: Effects of Complementary, Price, and Discount Level in Portugal

Martins, P; Rodrigues, P; Martins, C; Barros, T; Duarte, N; Dong, RK; Liao, Y; Comite, U; Yue, X

Preference between Individual Products and Bundles: Effects of Complementary, Price, and Discount Level in Portugal

Martins, P Rodrigues, P Martins, C Barros, T Duarte, N Dong, RK Liao, Y Comite, U Yue, X

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Publisher:: MDPI AG
Publication Type:: Journal Article
Citation:: Journal of Risk and Financial Management, 2021, 14, (5), pp. 192
Issue Date:: 2021-04-22

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Field	Value	Language
dc.contributor.author	Martins, P
dc.contributor.author	Rodrigues, P
dc.contributor.author	Martins, C
dc.contributor.author	Barros, T
dc.contributor.author	Duarte, N
dc.contributor.author	Dong, RK
dc.contributor.author	Liao, Y
dc.contributor.author	Comite, U
dc.contributor.author	Yue, X
dc.date.accessioned	2022-07-04T03:48:11Z
dc.date.available	2022-07-04T03:48:11Z
dc.date.issued	2021-04-22
dc.identifier.citation	Journal of Risk and Financial Management, 2021, 14, (5), pp. 192
dc.identifier.issn	1911-8066
dc.identifier.issn	1911-8074
dc.identifier.uri	http://hdl.handle.net/10453/158596
dc.description.abstract	<jats:p>This paper aims to (1) compare consumers’ preferences between individual products and bundles as well as (2) investigate some of the factors involved in bundle characteristics that may affect consumer’s preferences. Those factors are complementarity, price level, and discount level. An online survey developed by means of questionnaires were collected from the Portuguese population. Student’s t-tests were used to test the hypothesis formulated and to analyze the consumers’ preferences. The findings corroborate that in a scenario where the bundle does not offer any discounts, preference of individual products is higher. When a 20% discount is assigned to bundles, the overall preference for individual products is still superior. By offering a discount level of 45%, the overall preference for bundles becomes higher. The positive effect of complementarity bundles valuation is confirmed. This is the first approach to evaluate the preferences between bundles and individual products in the Portuguese market. The findings contribute to clarify the customer map within a Business Model Canvas. Furthermore, this paper analyzes the bundle complementarity and discount level effects simultaneously.</jats:p>
dc.language	en
dc.publisher	MDPI AG
dc.relation.ispartof	Journal of Risk and Financial Management
dc.relation.isbasedon	10.3390/jrfm14050192
dc.rights	info:eu-repo/semantics/openAccess
dc.title	Preference between Individual Products and Bundles: Effects of Complementary, Price, and Discount Level in Portugal
dc.type	Journal Article
utslib.citation.volume	14
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
utslib.copyright.status	open_access	*
dc.date.updated	2022-07-04T03:48:10Z
pubs.issue	5
pubs.publication-status	Published online
pubs.volume	14
utslib.citation.issue	5

Abstract:

This paper aims to (1) compare consumers’ preferences between individual products and bundles as well as (2) investigate some of the factors involved in bundle characteristics that may affect consumer’s preferences. Those factors are complementarity, price level, and discount level. An online survey developed by means of questionnaires were collected from the Portuguese population. Student’s t-tests were used to test the hypothesis formulated and to analyze the consumers’ preferences. The findings corroborate that in a scenario where the bundle does not offer any discounts, preference of individual products is higher. When a 20% discount is assigned to bundles, the overall preference for individual products is still superior. By offering a discount level of 45%, the overall preference for bundles becomes higher. The positive effect of complementarity bundles valuation is confirmed. This is the first approach to evaluate the preferences between bundles and individual products in the Portuguese market. The findings contribute to clarify the customer map within a Business Model Canvas. Furthermore, this paper analyzes the bundle complementarity and discount level effects simultaneously.

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http://hdl.handle.net/10453/158596