The impact of dynamic bundling on price fairness perceptions

Research output: Contribution to journalArticlepeer-review

27 Scopus citations

Abstract

With the increased availability of consumer-specific data and the ease of changing prices, firms more frequently use dynamic pricing where products are priced at an individual level based on individual consumer information. Dynamic pricing can effectively extract consumer surplus and increase firm profitability. However, it also arouses consumer unfairness perceptions. Three studies demonstrate that the use of bundling in combination with dynamic pricing (dynamic bundling) can reduce consumer unfairness perceptions. The negative effects of dynamic pricing are mitigated by bundling. A bundle enhances perceived transaction dissimilarity thereby reducing consumers’ comparison intentions leading to greater price fairness perceptions.

Original languageEnglish
Pages (from-to)204-212
Number of pages9
JournalJournal of Retailing and Consumer Services
Volume40
DOIs
StatePublished - Jan 2018

Bibliographical note

Publisher Copyright:
© 2017 Elsevier Ltd

Keywords

  • Bundling
  • Comparison intentions
  • Dynamic bundling
  • Dynamic pricing
  • Fairness and unfairness perceptions
  • Transaction dissimilarity

ASJC Scopus subject areas

  • Marketing

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