EXAMPLE 15.3 Bundling to Introduce a New Product

Bundling is a marketing strategy that involves the sale of two or more separate products in one package. It is frequently used to introduce a new product or brand. For example, a new hair gel might be bundled with a popular shampoo, or a new cell phone might be bundled with a new wireless service contract. While much research has been done in terms of evaluating the quality of a bundle, relatively little has been done on the effects of bundling. Do the characteristics of the partnered product affect a consumer’s opinion of the new product? One characteristic of interest would be the partnered product’s functional relatedness, or complementarity.³ If the partnered product is used in conjunction with the new product, does that enhance the consumer’s perception of the new product?