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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 Park1 · Min Zhang1

1 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