BUNDLING OF PRODUCTS AND SERVICES - IMPACT ON CUSTOMER SATISFACTION AND VALUE PERCEPTION IN INDIA
Saxena, R., Indian Institute of Management, Mahajan, S., Narsee Monjee Institute of Management Studies, India
Today marketer's concern is liquidation of inventory of finished goods in the market. Customers are just not buying and even those who are buying their brand loyalty is suspect. In order to overcome these problems, marketers are today using several strategic and tactical tools to sell and maximize value for the customer and create customer loyalty. Today the customer is looking for ways and means to maximizing his or her value for money. One approach is to offer advanced features and latest products and services without any increase in the price. The other is to bundle other products and services with the principal product. Bundling is today increasingly being used for selling the products and services in the Indian market. Bundling reflects monetary savings. However, there are many non- price related costs that are also associated with bundling. There are specific examples where the bundles are offered incomplete and the customer has complained of poor performance. In most such cases the consumer has had to pay more for getting the desired level of performance. In such a situation, the total price that the customer ends up paying is perhaps more than what he had expected and hence no saving. In such a case it creates dissonance in the customer's mind and hence lower value perception. This paper has investigated the impact of bundling on consumer's value perceptions and satisfaction in the growing Indian market.