• Title/Summary/Keyword: Bundling

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A Strategic Effect of Bundling on Product Distribution

  • Gwon, Jae-Hyun
    • Journal of Distribution Science
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    • v.13 no.10
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    • pp.15-21
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    • 2015
  • Purpose - This study examines a bundling effect on production and distribution in a patent-protected industry. Despite the heavy use of bundling strategies in the information and technology industry, literature has paid scant attention to bundling of intellectual property rights. This study examines a theoretical exploration of the bundling effect on licensing behavior. Research design, data, and methodology - To address this behavior, we build a simplified model consisting of three stages: 1) bundling decision, 2) licensing agreement, and 3) competition. The subgame perfect Nash equilibrium is applied to the model. Results - A single-patent holder with superior technology grants its own license to the multiple-patent firm, thereby leaving the market. Anticipating the single right holder's licensing strategy, the multiple-patent firm offers a bundle, making the single-right holder's bargaining position weaker. Conclusions - Bundling is an effective business strategy, resulting in multiple products for a firm as it faces other firms with single-product lines in each market. Taking advantage of the multi-patent or multi-product lines, the firm utilizes the bundling strategy obtaining better technology from the standalone single-patent firms.

Impact of Image Type and Brand Familiarity on the Effectiveness of Bundling

  • Sungmi Lee
    • International Journal of Internet, Broadcasting and Communication
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    • v.15 no.4
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    • pp.100-106
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    • 2023
  • Bundling has become a general promotion strategy in mobile shopping context. Previous research on bundling has mostly focused on bundle frame or price frame. Even though consumers are searching and purchasing the product in mobile channels, little research has investigated the effects of bundling in mobile shopping. The objectives of this study is to examine how different product image of bundle affects consumer's perception and purchase intention differently, and how brand familiarity moderate this influence. A sample of 140 subjects participated in a within-subjects experiment. A bundling composed of two different product image (a single product vs. bundled products) was evaluated by individuals. Brand familiarity (familiar brand vs. unfamiliar brand) were manipulated to test a set of hypotheses. We found that the effectiveness of bundling does not depend on the type of product image and brand familiarity. The findings of our study provide some implications for researchers and marketers. Although there have been studies on the effects of bundle framing on consumer behavior, we suggest new insights regarding bundling based on product image and mobile shopping context.

A Study on A method to Evaluate Market Dominance Transfer through Bundling Services in a Telecommunication Market (통신시장 결합상품을 통한 지배력 전이 검증 방법에 대한 연구)

  • Shin, Minsoo;Kim, Iljung
    • Korean Management Science Review
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    • v.32 no.2
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    • pp.37-50
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    • 2015
  • The number of contracts for bundling services in a domestic telecommunication market records 1.3 miilion as of the first half year in 2007, and steadily increased to 8.97 million in 2010, to 12.76 million in 2013. In 2014, 70.4% of telecommunication service consumers are found to subscribe to bundling service. Bundling services provide consumers with benefits such as price discount, convenience, increase ARPU. However, a market dominant player in a specific market may transfer its market power to another market by selling bundling services. SSNIP has been adopted to provide a market definition. However, SSNIP is not suitable to measure the effect of market power transition through bundling services because SSNIP cannot measure the effect of changeover sales of bundling services. Thus, in this study, we have investigated the effect of market power transition through bundling services reflecting market power effect and quality upgrade using Gross Upward Market Power Pressure Index metho and reviewed UPP and derivative UPP models.

The Effects on Social Welfare and Regulation of Bundling in Telecommunications Service (정보통신서비스 번들링의 경제적 효과분석과 규제개선 방안)

  • Jung, Choong-Young
    • Journal of the Korea Institute of Information and Communication Engineering
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    • v.13 no.2
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    • pp.207-214
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    • 2009
  • This paper provides the analysis of economic theories about bundling in telecommunications service. First, the negative aspect of bundling is discussed. Second, the competitively neutral aspect of bundling which is counter response of negative effect is analyzed. Third, some variables affecting the bundling is investigated and the corresponding effect of bundling is discussed. The bundling can increase the social welfare under some circumstance while it sometimes decreases economic efficiency by detering the entry of competitive firms. Finally, regulatory approaches on bundling such as the criteria of bundling provision, the requirement of equal access, the discounting scheme ad a price control, ex anti regulation vs. ex post regulation, and the criteria of predatory pricing are provided.

A Study on the Effects of Handset Bundling on Competition and Consumer Welfare (단말기 번들링이 경쟁과 소비자후생에 미치는 효과 연구)

  • Chung, Sukkyun
    • Journal of Digital Convergence
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    • v.12 no.7
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    • pp.11-20
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    • 2014
  • This paper finds that the ultimate source of problems facing Korean mobile telecommunications such as excessive subsidies of handsets, waste of resources, and a vicious circle of expensive handsets and high prices for services, is bundling of handset and subscription. The analysis suggests that bundling causes consumers to confuse about prices of handsets and services, and firms focus on handset subsidy competition rather than on upgrading service qualities and lowering prices due to anti-competitive effects of bundling. Because most of the cost of bundling is passed on to consumers, the welfare of consumers decline. In particular, equality among consumers worsens due to price discriminations. To resolve these problems, unbundling of handset and subscription is a necessity. Mixed bundling allowing separate selling of handsets under bundling does not seem to work as a cure because bundling tends to be a dominant strategy. The best regulatory policy is a complete separation of handset and subscription.

Strategic Bundling of HRM for Organizational Performance: an Empirical Study of Publicly Listed Companies

  • Gautam, Dhruba Kumar
    • Asia-Pacific Journal of Business
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    • v.5 no.2
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    • pp.51-64
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    • 2014
  • Strategic bundling of Human Resource Management (HRM) practices among themselves works together as an entire HRM system rather than individual HRM practices to achieve organizational objectives. The bundles of HR practices support the effectiveness of one another assuming the effectiveness of any practice depends on other practices in place. It is said that the greater the total degree of bundling among the various components of HRM policies and practices, the more will be the organizational outcomes. Realizing these facts, this study aimed to explore the level of strategic bundling and examined the impact of such bundling on organizational performance to the publicly listed companies of Nepal. This empirical study is based on description and exploratory design for which data collected through the questionnaire based on 5-point liker scale. Total population of the study at the time of data collection are 234 organizations publicly listed in Stock Exchange of Nepal. Questionnaire is distributed to all organizations listed, response received from 105 organizations, as a unit of analysis, which is fairly good response. The study of strategic bundling of HRM practices perhaps the first study in Nepal, found that only 32 percent organizations have followed high bundling HR practices and these high bundling organizations are significantly different with low bundling organizations. Business organizations are trying to practice being close association of HRM policies and practices within them except labor relation with employee participation and business strategies. Supporting to the international literature, strategic bundling of HRM practices among themselves shows statistically significant effects on quality of product or services, labor productivity, financial performance, employee satisfaction, rate of innovation, employee commitment and market share.

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Analysis of User Tendency between Subscriber and Non-subscriber to Bundling Service of LTE (LTE서비스의 결합상품 여부에 따른 사용자 특성분석)

  • Kim, KeunHyung;Son, Younghwan;Oh, SungRyoel
    • The Journal of the Korea Contents Association
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    • v.14 no.5
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    • pp.356-363
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    • 2014
  • With Sales of bundling service in telecommunications service are on the increase due to continuous technology progress and the raised demand into convergence and integration service. In this paper, we analyzed the tendencies differences between subscriber and non-subscriber of the bundling service in telecommunications service to establish marketing strategies of the bundling service. we derived the subjective norm and personal innovation as tendency variables of users in using LTE(Long Term Evolution) services, which are based on bundling sales motivation theory, theory of reasoned action, and diffusion of innovation theory. The tendency variables were compared between subscriber and non-subscriber of the bundling service through statistical T-test in empirical study. As a result, we discovered that there are differences in both subjective norm and personal innovation between subscriber and non-subscriber of the bundling service. We also discovered that the subjective norm and the personal innovation of subscriber are stronger than non-subscriber. At last, we derived two implications to increase the sales of the bundling services. First, the bundling service should designed more innovative. Second, it would be effective to apply buzz marketing strategies based on the surrounding people.

Development of Bundling Machine for Allium-odorum (부추 단 묶음 결속기의 개발)

  • Kim, Yong-Seok;Park, Te-Pyo;Park, Sung-Hee;Park, Sung-Ho;Yang, Soon-Young
    • Transactions of the Korean Society of Machine Tool Engineers
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    • v.17 no.6
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    • pp.56-62
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    • 2008
  • An Allium-odorum is difficult material to handle because it is soft and weak mechanically. For bundling work of allium-odorum, we must grip in the bundle shape of unit weight. However it is difficult to grip allium-odorum by hand because the bundle bulk is very big. Especially, in packing work, the bundle shape of allium-odorum package is more important than other vegetables because the sale price depend on the bundle shape. In this paper, we propose bundling mechanism for a rectangular shape, and semi-auto bundling mechanism by a eccentric roller and a triangular link. We carry out mechanical model and analysis respectively using the CATIA V5 and SimDesigner. We have manufactured the prototype of the semi-automatic bundling machine, and got satisfied result through field test. This machine is in the process of commercialization.

A Study of the Improvement of Promotional Gift Regulation on Broadcast-Telecommunication Bundling Services (방송통신 결합상품의 경품규제 제도개선에 관한 연구)

  • Byun, Jeongeun;Shin, Hyunmoon;Lee, Seungkoog
    • Korean Management Science Review
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    • v.31 no.4
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    • pp.75-92
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    • 2014
  • Broadcast-telecommunication bundling services provide customized services and reduce household telecommunication costs, contributing to the improvement of users' welfare. However, following the recent fierce competition of broadcast-telecommunication providers, the Korea Communications Commission, an organization that regulates promotional gifts and fee-reduction benefits to attract subscribers, has imposed a series of regulations. The excessive offering of promotional gifts can distort fair market competition and damage users. Yet if all bundling services are regulated uniformly, some benefits for users may be reduced, and the autonomous marketing competition of service providers may be restricted, thereby shrinking the entire communications market. Therefore, this study attempts to investigate domestic and foreign regulations on promotional gifts and other offerings related to broadcast-telecommunication bundling services, to analyze problems with respect to the current regulations and to propose an improvement plan. The study asserts that it is necessary to improve the violation decision criteria of the Korea Communications Commission and its regulations on broadcast-telecommunication service providers' promotional gifts in order to regulate the bundling services reasonably. In addition, it proposes a proper regulation of the OTS(Olleh TV Skylife) product, a new service emerging in the evolution of the bundling service type.

Development of Automatic Bundle Machine for Vegetables(II) : Prototype Manufacture and Performance Test (채소 자동결속기의 개발(II) : 시제품제작 및 성능검증)

  • Kim, Yong-Seok;Park, Sung-Ho;Yang, Soon-Young
    • Journal of the Korean Society of Manufacturing Technology Engineers
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    • v.18 no.4
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    • pp.375-380
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    • 2009
  • In this paper, it has been proposed an automatic vegetable bundling mechanism that makes use of heat melt sticking. The proposed mechanism is consisted of three modules for the rationality of manufacture. Design specification has been determined by the bundling mechanism that was optimized mechanically. And, it has been manufactured the prototype of the automatic bundling machine. It has been carried out directly the field test for verification of performance in farmhouse which produces vegetable. In field test, this bundling machine showed efficiency of about 3.6 times than the manual working by manpower, and other performance it got satisfied result. This automatic vegetable-bundling machine was already registered as the agricultural machine. and This machine will be commercialized soon.

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