Product bundling: Impacts of product heterogeneity and risk considerations

Sheikhzadeh, Mehdi; Elahi, Ehsan

doi:10.1016/j.ijpe.2013.02.006

Cited by 43 publications

(19 citation statements)

References 42 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The second stream is from the operational level with focus on how to give an optimal scheme of pricing and composition of bundles. The mostly used methods are probability model [12], Bayes model [13], and MILPs (Mixed integer linear programs) [14]. MILPs are efficient when the number of products is large [15].…”

Section: Literature Reviewmentioning

confidence: 99%

Bundle Pricing Decisions for Fresh Products with Quality Deterioration

Yan

Jiang

Han

2018

Journal of Food Quality

View full text Add to dashboard Cite

How to sell fresh products quickly to decrease the storage cost and to meet customer quality requirement is of vital importance in the food supply chain. Bundling fresh products is an efficient strategy to promote sales and reduce storage pressure of retailers. In this paper, we consider the bundle pricing decisions for homogeneous fresh products with quality deterioration. The value of fresh products with quality deterioration is approximated as an exponential function based on which customer's reservation prices are calculated. A nonlinear mixed integer programming model is used to formulate the bundle pricing problem for fresh products. By adding auxiliary decision variables, this model is converted into a mixed integer linear program. Numerical experiments and sensitive analysis are conducted to provide managerial insights for bundling fresh products with quality deterioration.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Bundle Pricing Decisions for Fresh Products with Quality Deterioration

Yan

Jiang

Han

2018

Journal of Food Quality

View full text Add to dashboard Cite

show abstract

“…When an ant moves towards a selected neighboring node , a candidate bundle is formed including the substitute product from which the ant initiated the search and complementary products from the nodes visited so far. For the selected node theant calculates the fitness of the candidate bundle according to (3). If the fitness of the candidate bundle is higher, then product is included in the bundle, that is , else is not included in the bundle, that is .…”

Section: Considering Nodementioning

confidence: 99%

“…Through bundling many opportunities can be offered both to potential customers and to businesses, such as improved customer service, reduced logistics, packaging, and transaction costs, and increased sales and market share, all of which contribute to increased profitability [2]. As an example of common bundling applications in daily life are various vacation packages, software services, insurance and telecommunication packages [3]. The problem of product bundling is a challenging task since product bundles are not restricted to contain products originating from one supplier only; instead it is quite common to combine products from different suppliers whose availability and price varies dynamically, as is often the case in enterprise networks [4].…”

Section: Introductionmentioning

confidence: 99%

A Bio-inspired Approach for Dynamic Product Bundling in Enterprise Networks

Karageorgos¹,

Rapti²,

Gerogiannis³

2016

JSW

View full text Add to dashboard Cite

Product bundling is a marketing strategy that concerns offering several products for sale as one combined product. Current bundling technology mainly focuses on the creation of static bundles, which involves pre-computing product bundles and associated discounts. However, due to the inherent dynamism and constant change of current and potential customer information, as is particularly the case in enterprise networks, static product bundles often prove to be inefficient. In this paper, we propose a bio-inspired approach for dynamic generation of personalized product bundles. The approach is based on the Ant Colony Optimization algorithm aiming to optimize the match between the available products and individual customer preferences. The applicability of the proposed approach is discussed through an exemplar application scenario.

show abstract

“…Pure bundling is the sale of packages containing some products. It can significantly increase profit and sales, and help businesses to save costs (Sheikhzadeh and Elahi, ). Customers often prefer to achieve a cluster of satisfaction through one purchase at a price that is usually lower than the price of the components purchased separately (Guiltinan, ; Chew et al., ).…”

Section: Introductionmentioning

confidence: 99%

Pricing decisions in a multiechelon supply chain under a bundling strategy

Eghbali-Zarch

Taleizadeh

Tavakkoli–Moghaddam

2019

Int Trans Operational Res

View full text Add to dashboard Cite

Product pure bundling is an effective marketing strategy in real successful businesses, which has been extensively discussed in the economics and marketing areas. While investigating the theoretical and empirical aspects of operational and supply chain implications of pure bundling is essential, this paper determines the optimal pricing decisions in a centralized three‐level supply chain that consists of multiple raw material suppliers, a manufacturer and a retailer, and analyzes the impact of raw material suppliers and manufacturer operations and market characteristics on selecting the best pricing strategy. A general supply chain structure is considered, in which the manufacturer receives different raw materials from the suppliers, produces two different products, and then sells them separately, called no bundling strategy, and sells two products in a package, called pure bundling strategy, with uniformly distributed customer valuations. The proposed model finds the optimal pricing decisions of the mentioned supply chain under pure and no bundling strategies and derives the closed‐form solutions to explore the impact of each strategy on the performance of the chain due to its profit. Computational results and sensitivity analysis explain how pure bundling can be utilized as an operational strategy to improve the integrated supply chain profit through a case study. Accordingly, the final results indicate that small market size, low costs, and small amounts of required raw materials, bundling basic products with the premium ones makes the pure bundling strategy profitable even when the cost of the packages is more than the sum of the costs of two products.

show abstract

Product bundling: Impacts of product heterogeneity and risk considerations

Cited by 43 publications

References 42 publications

Bundle Pricing Decisions for Fresh Products with Quality Deterioration

Bundle Pricing Decisions for Fresh Products with Quality Deterioration

A Bio-inspired Approach for Dynamic Product Bundling in Enterprise Networks

Pricing decisions in a multiechelon supply chain under a bundling strategy

Contact Info

Product

Resources

About