The Effects of Price Discount and Product Complementarity on Consumer Evaluations of Bundle Components

Existing research in bundling has primarily focused on consumer evaluations of a bundle as a whole. Drawing upon reference price theory and mental accounting theory, this paper investigates the effects of price discounts on consumer evaluations of the discounted product in a bundle. It examines how these effects interplay with complementarity of bundle components. The results of three experimental studies indicate that bundle price discounts...