Price bundling presentation and consumer's bundle choice: The role of quality certainty

As bundling has become a prevalent marketing strategy, the existing literature has focused on how to present price discount information for bundled products. To further understand bundling in restaurant operations, this study examined the moderating role of consumer quality certainty on the relationship between the effects of price bundling and consumers’ bundle choices. This study analyzed different bundling phenomena from an acquisition–transaction utility theory perspective in order to investigate the effects of price presentation and quality certainty manipulation on consumers’ bundle choices. Hierarchical regression analyses showed that quality certainty had a significant moderating effect. The less confident a consumer is about the quality of the bundled food products, the more likely it is that price presentation strategies will affect his or her willingness to order a bundle menu. The results also showed that transaction utility becomes significant as price discount information is segregated and as consumers are more certain of the quality of the bundled products. Managerial implications for restaurant operations are also discussed.

Research highlights▶ This study investigates the effects of price presentation and quality certainty manipulation on consumers’ bundle choices. ▶ The less confident a consumer is about the quality of the bundled food products, the more likely it is that price presentation strategies will affect his or her willingness to order a bundle menu. ▶ Transaction utility becomes significant as price discount information is segregated and as consumers are more certain of the quality of the bundled products.