Cross-Category Add-On Bundling: Impact of the Consumption Nature of Bundled Products on Discount Framing Effectiveness. (January 2023)

• Record Type: Journal Article
• Authors: Song, Myungkeun; Noone, Breffni M.; Mattila, Anna S.
• Is Part Of: Journal of travel research. Volume 62:Number 1(2023)
• Page Start: 197
• Page End: 216
• Publication Date: 2023-01
• Subjects: add-on bundles -- discount framing -- hedonic/utilitarian products -- information processing style; Travel -- Research -- Periodicals; Tourism -- Periodicals; Tourism -- Research -- Periodicals; 910.72
• DOI: 10.1177/00472875211057599
• Languages: English
• ISSNs: 0047-2875

Abstract

In a series of three studies, we explore the effectiveness of two types of discount frames—add-on discount frame (ADF) and bundle discount frame (BDF)—in driving consumers' purchase intentions for cross-category, add-on travel bundles. Consistent with the analytical mindset induced by a utilitarian core product, we found that an ADF is most effective in driving purchase intentions for utilitarian core-hedonic add-on bundles due to the heightened sense of savings and ease of justification (Study 1). Conversely, consumers tend to adopt a heuristic mindset when evaluating a hedonic core product. Hence, heightened perceptions of attractiveness associated with a BDF (vs. ADF) yield higher purchase intentions for hedonic core-utilitarian add-on bundles (Study 2). Study 3 provides process evidence for the hypothesized effects.