Cross-Category Add-On Bundling: Impact of the Consumption Nature of Bundled Products on Discount Framing Effectiveness

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Abstract

In a series of three studies, we explore the effectiveness of two types of discount frames—add-on discount frame (ADF) and bundle discount frame (BDF)—in driving consumers’ purchase intentions for cross-category, add-on travel bundles. Consistent with the analytical mindset induced by a utilitarian core product, we found that an ADF is most effective in driving purchase intentions for utilitarian core-hedonic add-on bundles due to the heightened sense of savings and ease of justification (Study 1). Conversely, consumers tend to adopt a heuristic mindset when evaluating a hedonic core product. Hence, heightened perceptions of attractiveness associated with a BDF (vs. ADF) yield higher purchase intentions for hedonic core-utilitarian add-on bundles (Study 2). Study 3 provides process evidence for the hypothesized effects.

Original languageEnglish (US)
Pages (from-to)197-216
Number of pages20
JournalJournal of Travel Research
Volume62
Issue number1
DOIs
StatePublished - Jan 2023

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Transportation
  • Tourism, Leisure and Hospitality Management

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