Servitization is the activity of selling the services provided by the product rather than the product itself. It is a business model that might be environmentally superior to conventional selling. Servitization promises accessibility to the product's functionality, pooling of consumer use, and...

We develop a model to derive an optimal price for a bundle of two goods when buyers are risk averse and uncertain about the valuation of each good. In theory, the optimal bundle price depends not only on the probability of a positive valuation of each good, but also on the correlation between...

This study, based on a real problem in the industrial gas business, examines product bundling under B2B relations with two unique customer behavioral characteristics: (i) customers' discount expectation on products increases with the magnitude of the business offered to the seller, and (ii) they...

Product bundling is a common marketing strategy for cross-selling in multiproduct firms. Motivated by settings in online product recommendation, we propose a new approach, dubbed bundle recommendation and pricing (BRP), to enhance the performance of bundle recommendation system. BRP keeps all...

Bundle pricing is commonly adopted by service firms managing multiple congestion-prone service facilities. Under bundle pricing, the firm charges a single price for all the services as a whole, and customers either purchase the bundle or do not purchase at all. This scheme is in contrast to à...

Existing studies have mainly focused on pricing in either primary markets or aftermarkets. However, in practice, prices in primary markets and aftermarkets are closely correlated. This study examines the joint pricing strategy in both primary markets and aftermarkets based on customer utility...

Various types of conditional arrangements exist in the market. Two such common arrangements are ‘tying’ and ‘bundling’. Tying in simple terms arose when the seller or company of a product or service makes the buyer buy the second product conditional along with the first product. This...

This article invokes a concept of ‘community-based individual property rights’ as individual property rights recognized in a communal property system by virtue of community membership. It employs mixed methods, including a comparative analysis that reviews and develops the ‘bundle of...

We develop a consumer level demand model of telecommunications and broadcasting services considering an exhaustive set of alternatives available to consumers including bundled services. We then estimate switching costs associated with bundling. Previous studies consider restricted choice sets...

Aim/purpose - The main purpose of this research is to identify and characterize the phenomenon of servitization in the food behaviors of Polish consumers and the factors shaping it. Design/methodology/approach - The empirical research was conducted on a sample of 660 respondents in the entire...

This paper aims to (1) compare consumers' preferences between individual products and bundles as well as (2) investigate some of the factors involved in bundle characteristics that may affect consumer's preferences. Those factors are complementarity, price level, and discount level. An online...

With progressions in technology and high demand for value, business model designs based on cooperative systems are essential for innovative manufacturing servitization. Previous studies, which focused on product innovation or specific industries, either lacked standardized steps or promoted...

We develop a unified theory of exclusive dealing and exclusionary bundling. In a framework with two competing manufacturers which supply their product(s) through a monopolist retailer, we show that buyer power restores the profitability of such practices involving inefficient exclusion. The...

Prior servitization papers have demonstrated mixed results regarding the profit impact of servitization and the capabilities required to facilitate the servitization process. We tap into this issue problem by aiming to investigate the relationship between servitization and company profitability...

As manufacturing businesses compete in an ever more competitive and global economy where products get easily commoditized, innovating by adding services to the core product offering has become a highly popular strategy. Contrary to the expected strategic and economic benefits, recent findings...

This study theoretically categorizes fee and commission income as inseparable and complement, and incorporates them into the Ho and Saunders (1981) bank model in the presence of bundling strategy, as a popular banking strategy. By also assuming different information levels of customers, the...

In this paper, we explore the competitive significance of both bundled and loyalty discounts. The paper proceeds as follows. In Section II, we examine the antitrust treatment of both bundled discounts and loyalty discounts in the United States. In Section III, we examine bundled discounts and...

This is a paper-based dissertation, consisting of a 'cape' and three articles, one of which is singleauthored. The topic is servitization at work. Servitization is a competitive strategy that, typically, Western industrial manufacturing companies implement in order to secure their continued...

This paper investigates how a profit-maximizing asset originator can coordinate the information acquisition of investors with different expertise by means of asset bundling. Bundling is beneficial to the originator when it discourages investors from analyzing idiosyncratic risks and focuses...

We examine two distinct forms of information bundling that can occur when a firm releases a restatement: “positive bundling,” the release of good news with the restatement, and “negative bundling,” the release of additional bad news. We use a triple differences testing approach to...

We evaluate the impact of bundling on firms' product and pricing strategies by developing and solving a multi-stage game theoretic model to represent strategic interactions between two competing firms. Each firm is able to produce two homogeneous products and can opt to bundle them together,...

Bundling credit with insurance contracts is a common approach to increasing insurance take-up, especially in low income-environments. I document that this approach can induce adverse selection in insurance; thus, acting as an important source of inefficiency

How do owner-managers transform resources to create value? Recent work on the framework of resource management—a firm's ability to structure, bundle, and leverage resources—has enhanced the resource-based theory (RBT) of the firm by incorporating testability and measurability and stressing...

This is a paper-based dissertation, consisting of a 'cape' and three articles, one of which is singleauthored. The topic is servitization at work. Servitization is a competitive strategy that, typically, Western industrial manufacturing companies implement in order to secure their continued...

Innovation has been and continues to be an important theme in management literature, and almost any improvement upon the status quo could be regarded as some sort of innovation. Such an improvement could be made in terms of an increase of efficiency for an existing process or the creation of...