The presence of emotional factors: An empirical exploration of bundle purchasing process. Issue 8 (September 2015)

• Record Type: Journal Article
• Authors: Mikkonen, Karri; Niskanen, Hanna; Pynnönen, Mikko; Hallikas, Jukka
• Is Part Of: Telecommunications policy. Volume 39 Issue 8(2015)
• Page Start: 642
• Page End: 657
• Publication Date: 2015-09
• Subjects: Bundles -- Product bundling -- Bundle-purchase process -- Systemic functionality -- Usage convenience -- Co-creation; Telecommunication -- Periodicals; Télécommunications -- Périodiques; 384
• DOI: 10.1016/j.telpol.2015.05.003
• Languages: English
• ISSNs: 0308-5961

Abstract

Abstract: While the telecommunications industry is in the process of introducing bundles that cover pricing, services, and content, several risks remain to be clarified and avoided. In this paper, we reviewed the literature on the motives behind the consumer׳s decision to purchase a bundle and found that holistic frameworks of purchasing factors, especially in bundle purchasing, are rare. To reach a more comprehensive framework, we examined the bundle purchasing process through an empirical study that incorporates old and new elements in the purchasing of bundled services. Starting with the customer׳s concerns in the purchasing process, we widened the scope to include considerations of usage convenience and life-cycle costs related to bundles, and we covered various other potential open question specific to bundling. By means of exploratory factor analysis, following the K –1 rule, we extracted eight factors and gave them preliminary names. Moreover, we conducted a linear regression analysis on how these eight factors influence the customer׳s willingness to buy a bundle service. Therefore, these factors can serve as a framework for further studies on the bundle purchasing process. In this paper, we also discussed newly discovered emotional factors affecting the purchasing process. In particular, usage convenience and self-image seem to be self-standing factors affecting the willingness to buy. This paper also contains an acknowledgment of the study׳s limitations to ascertain the reliability and validity of the study and of the factors extracted. Finally, we discussed the results and their contribution to theory building in bundle-specific marketing research and to practicing telecommunications managers, and we offered suggestions for future research. Highlights: Bundle purchasing process adds complexity for customers and challenge for providers. From exploratory factor analysis we discovered new emotional type of factors. We examined all eight factors found with linear regression. Usage convenience, service satisfaction, self-image and provider responsiveness drive willingness to buy a bundle. Bundle introduction includes thus apart contextual and psychological ramifications.