Strategic Use of Bundling for Reducing Consumers’ Perceived Risk Associated with the Purchase of New High-Tech Products

Abstract

Consumers' perceived risk is a significant barrier to the adoption of new high-tech products. Based on a review of the marketing, consumer behavior and psychology literatures, a theoretical framework is developed here that suggests how bundling a new high-tech product with an existing technology could help reduce consumers' perceived risk associated with the purchase of the new high-tech product. This manuscript also explores what factors influence consumers' risk perception when a product bundle is available. Managers might use this framework to develop bundling strategies for high-tech products, and to understand what factors make such bundles more attractive.