An exploratory study and consumers' perceptions of e–reverse bundling price in online retailing

Limited information exists about consumer reaction to a potentially major e–nnovation known as e–reverse bundling. This study explores how brand reputation, benefits and word–of–mouth directly affect consumer perceptions in e–reverse bundling. Two experiments were conducted. One shows that diversity of product choice and e–reverse pricing directly affect consumers' perceptions and benefits. In particular, consumers' perceptions of bundles are consistent with the proposition of Stremerch and Tellis (Stremersch, S. and Tellis, G.J. (2002) Strategic bundling of products and prices: A new synthesis for marketing. Journal of Marketing66, 55–72) that for price information, it is optimal for companies to: (a) integrate all price information in a single bundle price or re–adjusted single bundle price rather than present it in a list of separate product prices, and (b) separate the bundle discount in multiple savings rather than present it as a single saving. The second experiment revealed that attribution and the relationship with a web retailer affected positive and negative word–of–mouth communication intentions. The experiments help us to understand consumer perceptions and behavioral intentions towards a future emerging product—e–reverse bundling price. The results have implications for managers and academics in the areas of product development, consumer behavior, and brand reputation.