The effect of bundle size on the purchase intention of consumers.

• Main Authors: Suhail, Hena., Kiew, Jinnie Wei Ting., Koh, Adeline Jia Tian.
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::Marketing::Consumer behavior
• Online Access: http://hdl.handle.net/10356/51369
• Institution: Nanyang Technological University

Bundling is an important marketing strategy used by many marketers to launch new products, be it whether it is from a new brand or a brand extension. This is because it allows for maximum market penetration. However, while designing a bundle, many often overlook the effect of the bundle size, an important factor, on the purchase intention of consumers. A bundle's quantity requirement serves as a benchmark on which consumers anchor their quantity decision. It varies for different types products and is determined by the level of brand familiarity. In this study, a 2 (Brand Familiarity: New Brand versus Brand Extension) X 2 (Bundle Size: Big versus Small) between-subject experiment design was adopted to determine whether bundle size does indeed influence purchase intention. The results of this study indicate that brand familiarity moderates the effect bundle size has on purchase intention. Furthermore, the larger the bundle size of a new product from an existing brand, the higher the purchase intention will be of consumers. The converse is true for a new brand where the larger bundle size of a new product from a new brand, the lower the purchase intention will be of consumers. This study provides an added dimension to the concept of bundle design that would provide a better understanding for marketer in their quest to create a perfect bundle that would lead to immediate and sustainable success.