An Exploratory Study and Consumers' Perceptions of E-Reverse Bundling Price in online Retailing

An Exploratory Study and Consumers' Perceptions of E-Reverse Bundling Price in online Retailing

Limited information exists about consumer reaction to a potentially major e-nnovation

known as e-reverse bundling. This study explores how brand reputation, benefits and

word-of-mouth directly affect consumer perceptions in e-reverse bundling. Two

experiments were conducted. One shows that diversity of product choice and e-reverse

pricing directly affect consumers' perceptions and benefits. In particular, consumers'

perceptions of bundles are consistent with the proposition of Stremerch and Tellis

(Stremersch, S. and Tellis, G.J. (2002) Strategic bundling of products and prices: A new

synthesis for marketing. Journal of Marketing 66, 55–72) that for price information, it is

optimal for companies to: (a) integrate all price information in a single bundle price or

re-adjusted single bundle price rather than present it in a list of separate product prices,

and (b) separate the bundle discount in multiple savings rather than present it as a

single saving. The second experiment revealed that attribution and the relationship

with a web retailer affected positive and negative word-of-mouth communication

intentions. The experiments help us to understand consumer perceptions and

behavioral intentions towards a future emerging product—e-reverse bundling price.

The results have implications for managers and academics in the areas of product

development, consumer behavior, and brand reputation.

KEYWORDS: e-dynamic bundling; value perception; brand reputation

In conclusion, consumer perception of new e-reverse bundling is a function of dynamic pricing

and diversity of product assortment. With respect to e-reverse bundling, consumers have a

positive value perception on the benefits, while they have a set of risks associated with purchase.

These inherent risks can be reduced with supplementary instruments, such as warranties. In

addition, the attribution process and the relationship of post-purchase consumers help

communicate positive word-of-mouth. In particular, when the retailer develops relationships

with consumers who experience negative performance, this can foster customers, facilitate

product development through feedback, improve firm profitability, as well as reduce negative word-of-mouth