The dilemma of mixed bundles: The effects of price, brand, and content preference on music CD bundle choices

Most of the studies on bundling have focused on pure bundles; the literature has paid little attention to mixed bundles, in which the bundle item could be bought separately. Our research fills the literature gap by conducting a field study and a computer interactive experimental design. The results show that the prices of the focal item and the tie-in item have asymmetric effects on consumers' purchase intentions in regard to the whole bundle. Specifically, a price discount on the focal item is more effective in enhancing purchase intentions than on the tie-in. Also, a high priced tie-in may result in bundle choice deferral. Finally, when consumers choose the tie-in, content preference is more important than brand preference in CD bundle choices. The findings suggest that CD retailers should offer a high price discount on the focal item rather than on the tie-in, in their pricing and product strategies for bundling promotion.

► We examine the effects of price, brand and content preference on mixed CD bundle choices.
► The prices of the focal and the tie-in item have asymmetric effects on purchase intentions.
► A price discount on the focal is more effective in enhancing purchase intentions than on the tie-in.
► A high priced tie-in may result in bundle choice deferral.
► When choosing the tie-in, content preference is more important than brand preference.