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Research Article

Burger vs. Combo: The Effects of Presentation Order of Individual and Bundle Prices, Numerical Complexity, and Price Arrangement on Bundle Product Choice

Jihye Park, Min Zhang

Hankuk University of Foreign Studies
Hankuk University of Foreign Studies

Published: January 2022 · Vol. 51, No. 1 · pp. 251-284

DOI: https://doi.org/10.17287/kmr.2022.51.1.251

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Abstract

The purpose of this research was to examine the effect of single vs. bundle price location, number complexity, and price arrangement of bundle choice. Results of a series of experiments showed that due to perceived difficulty of subtraction (or computation complexity), consumers tended to perceive less magnitude of the price difference between a single and a bundle product and choose more bundles when the single price/low price was placed left and the bundle price/high price was placed right as compared to when the bundle price/high price was placed left and the single price/low price was placed left. Number complexity moderated the effect of the price location on the magnitude of the price difference. Furthermore, when the single-bundle prices were displayed horizontally, consumers perceived less magnitude of the price difference between a single and a bundle product and chose more bundles than when the single-bundle prices were displayed vertically. Theoretical and practical implications were further discussed.
Keywords: complexity of computationprice locationhorizontal arrangementvertical arrangementprice arrangementsubtractionbundle pricing