The Price Bundling of Services: A Normative Framework

Guiltinan, Joseph P.

doi:10.1177/002224298705100206

Cited by 292 publications

(185 citation statements)

References 18 publications

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“…According to Guiltinan (1987), a service bundle is a set of services that are sold together at a single price. E.g.…”

Section: The Pricing Model Ontologymentioning

confidence: 99%

“…As a consequence, services are offered as a bundle consisting of elementary services. Service marketers define bundling as the practice of selling two or more products together in a single package (see Guiltinan, 1987;Stremersch & Tellis, 2002). Examples include Internet (internet access, e-mail hosting, spam filters etcetera) and holiday (transportation, plus hotel, plus dinner-arrangements).…”

Section: Introductionmentioning

confidence: 99%

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e3service: An ontology for needs-driven real-world service bundling in a multi-supplier setting

Kinderen¹,

Leenheer

Gordijn

et al. 2013

Applied Ontology

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Businesses increasingly offer their services electronically via the Web. Take for example an Internet Service Provider. An ISP offers a variety of services, including raw bandwidth, IP connectivity, and Domain Name resolution. Although in some cases a single service already satisfies a customer need, in many situations a customer need is so complex that a bundle of services is needed to satisfy the need, as with the ISP example. In principle, each service in a bundle can be provisioned by a different supplier. This paper proposes an ontology, e 3 service, that can be used to formally capture customer needs, services, and multi-supplier service bundles of these. In addition, this paper contributes a process called PCM 2 to reason with the ontology. First, a customer need is identified for which desired consequences are elicited. Then, the desired set of consequences is matched with consequences associated with services. The matching process results in a service bundle, satisfying the customer need, containing services that each can be provided by different suppliers. PCM 2 is inspired by a family of formal reasoning methods called Propose-Critique-Modify (PCM). However, whereas PCM methods emphasize solution generation from a given set of requirements, our reasoning process treats the space of requirements as a first class citizen. Hence PCM 2 : the requirements space and solution space are equally important. How the reasoning and matching process practically works, is illustrated by an industry strength case study in the healthcare domain. S. De Kinderen et al. / An ontology for needs-driven service bundling in a multi-supplier settingName resolution; but additional services, such as an email box, chat box, Voice over IP (VoIP), or Instant Messaging (IM) may be offered as well.Although many customers may deal with just one ISP to have all their Internet-related needs satisfied, this is not always strictly necessary or possible. The above-mentioned basic ISP services may each be provided in their own right, and so by different suppliers. For example, the customer may obtain raw bandwidth from supplier S 1 , IP connectivity and Domain Name resolution from supplier S 2 , and an email box from yet another supplier. Partnering enables suppliers to cooperate and satisfy complex customer needs they never could have done on their own in a flexible way. This phenomenon is increasingly observed in e-commerce settings, especially when small enterprises come into play (see e.g. Tapscott et al., 2000).Multi-supplier bundles often satisfy customer's need much better and cheaper, as opposed to a single supplier bundle. Moreover, fixed single supplier service offerings often contains unwanted services such as an ill-functioning spam filter of an email service with poor storage capabilities. Given this explosion of possible combinations, it is a technological challenge to provide automated support for composing the most optimal bundle in response to an individual's unique needs, and by doing so build long-term partnerships among ...

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“…According to Guiltinan (1987), a service bundle is a set of services that are sold together at a single price. E.g.…”

Section: The Pricing Model Ontologymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

e3service: An ontology for needs-driven real-world service bundling in a multi-supplier setting

Kinderen¹,

Leenheer

Gordijn

et al. 2013

Applied Ontology

View full text Add to dashboard Cite

show abstract

“…The approach branded as Price Bundling (Guiltinan, 1987) promises a higher customer value and cost reduction both at the same time, to marketers. In the price bundling approach, two or more components of service or two or more service offers are bundled together and offered at a single price to the customers.…”

Section: New Pricing Options For Relations Building In Servicesmentioning

confidence: 99%

“…Price bundling seeks to offer disproportionately higher value to the service customers though a single price and thus, helps build an enduring relationship with them. The concept of price bundling offers several variations and extensions, reflecting the individual importance of the product in the service bundle (Guiltinan, 1987). Though the concept is meritorious, it is not fully free from a potential dissonance in relationship.…”

Section: New Pricing Options For Relations Building In Servicesmentioning

confidence: 99%

Building Relationship through Pricing

Agrawal

Borah²

2002

Paradigm: A Management Research Journal

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Pricing, especially service pricing, is among the under researched areas. As a result, the fuller potential of pricing is yet to be seen in services marketing and in relationship building. As marketing converts to relationship marketing, pricing too should follow suit and become relationship pricing. It is widely believed that the ways to the heart of the customer are through customisation, communication and emotions. Charging customers for any of the services is certainly not among the favored ways to charm the customers. The paper critiques the existing pricing strategies from the goal of relations building. It follows up the same through a case study of a major corporate hospital that adapted and strategised relationship pricing. Set in the backdrop of a new order of healthcare in India, GNRC hospital -a tertian; hospital in the private sector, is consciously creating a relationship with its customers through a web of creative pricing policy, price bundling and payment systems. The conceptual and the case-based analysis in the paper reflect the fact that pricing is among the more relevant indices to a price sensitive Indian market. It is more so in the northeast of India that is coming out of years of economic exploitation and social neglect. The distinctly poor northeast merits down to earth routes of relationship building. GNRC case offers the same to its customers and probably, a Jew inputs to its fellow healtlzcare providers and to the global customer managers affiliated to the health care services. BACKDROPRelationship building with customers is currently the over-riding goal of marketing (Webster, 1992). In service industries, the goal is especially desired since a relationship customerwhether a repeat, upgrade or cross product buyer, costs significantly lower than a new customer. Similar costing is evident when marketers need to replace the lost customers (Berry, 1983).

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“…One strategy to offer attractive services is to bundle a number of them. We consider bundling as the sale of two or more separate products or services in one package for a special price [8][27] [30]. Given the lack of a single killer application for 3G m-services, and given that the mobile device and m-services should fulfill personal user needs in varying circumstances, a bundle of m-services maybe more capable of providing the right bundle of benefits [19].…”

Section: Introductionmentioning

confidence: 99%

Bundled Mobile Services: The Impact on Consumers' Intention to Adopt

Teerling

Haaker

Vos

et al. 2009

2009 42nd Hawaii International Conference on System Sciences

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Mobile services (m-services) are different from traditional services in that the use of these services takes place through a mobile device and as such can be used any time and any place. Even though consumers increasingly use their mobile phones [22], adoption of m-services is still lingering. In this study, we add to current knowledge on the consumer's value and adoption of m-service bundles. We determine how m-service bundle compatibility, meaning the extent to which the m-service bundle fits together, affects consumers' value and intention to use a m-service bundle. We show that m-service bundle compatibility enhances key relationships in the value-intention framework. The analyses reveal that not only does m-service bundle compatibility matter, but also that this varies for current adopters versus non-adopters of m-services. As a result, managers should focus on designing compatible m-service bundles in order to increase adoption amongst new customers.

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The Price Bundling of Services: A Normative Framework

Cited by 292 publications

References 18 publications

e3service: An ontology for needs-driven real-world service bundling in a multi-supplier setting

e3service: An ontology for needs-driven real-world service bundling in a multi-supplier setting

Building Relationship through Pricing

Bundled Mobile Services: The Impact on Consumers' Intention to Adopt

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