The effect of price bundling on consumer perceptions of value

Abstract

Examines the importance of delivering an all‐inclusive price bundle to consumers. A longitudinal study is conducted to test the role of expectations of both price and other costs (e.g. hassle, time spent) associated with a price bundle on perceptions of value across first‐time and repeat guests at an upscale resort/spa. The findings confirm that consumers consider more than just benefits (quality) and price when assessing value. Specifically, finds that providing an all‐inclusive price package, even if actual monetary outlay is higher, will significantly increase perceptions of value for first‐time consumers.