search query: @indexterm BUNDLING / total: 16
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| Author: | Gans, J.S. King, S.P. |
| Title: | Paying for loyalty: product bundling in oligopoly |
| Journal: | Journal of Industrial Economics
2006 : MAR, VOL. 54:1, p. 43-62 |
| Index terms: | marketing brands strategy consumer behaviour loyalty products bundling supermarkets petroleum stations |
| Language: | eng |
| Abstract: | Retailers such as supermarket and retail gasoline chains may offer bundled discounts (here as: b-ds.) to customers buying their respective product brands. These discounts are a fixed amount off the prices that allied brands continue to set independently. It is shown that a pair of firms can profit from offering b-ds. to the disadvantage of other firms and consumers whose preferences are farther removed from the bundled brands. When both pairs of firms negotiate bundling arrangements, there are no beneficiaries and consumers find themselves consuming a sub-optimal brand mix. |
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