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Two-phase bundling strategy with limited capacity

Published: 10 January 2019 Publication History

Abstract

Bundling, as an effective marketing model, has been gradually applied in all fields since the 1970s. Although there has many researches on bundling, the two-phase bundling strategy is still rare. This study considers a retailer who has a limited capacity of products sells two types of independent products in two periods, which the retailer can choose to sell products separately (pure components, PC) or bundled (pure bundling, PB) in different period. So there are four strategies the retailer can choose, i.e., PC-PC, PB-PB, PC-PB, and PB-PC. The research compares them, and the results show that the best bundling strategy depends on the capacity of two products.

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    IC4E '19: Proceedings of the 10th International Conference on E-Education, E-Business, E-Management and E-Learning
    January 2019
    469 pages
    ISBN:9781450366021
    DOI:10.1145/3306500
    Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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    Publication History

    Published: 10 January 2019

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    Author Tags

    1. bundling
    2. dynamic pricing
    3. limited capacity

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