NDLI: Digital bundling

Content Provider	Springer Nature Link
Author	Akçura, M. Tolga Altınkemer, Kemal
Copyright Year	2009
Abstract	Increasingly, we see that firms offer many items on information-intensive channels and the Internet. Especially with low-marginal-cost digital goods, bundling may be a beneficial strategy. Different bundles may help customers become more discriminating and maximize profits. However, the marketplace evidence provides mixed observation of bundling rigorously pursued. In this study, we provide a general framework to analyze when and how bundling may be beneficial. We compare and contrast the firm and customer characteristics on bundling strategy. We analyze when individual sales can be beneficial. We find that when costs do not increase relative to the bundle valuation, firms find it beneficial to limit the number of bundles offered in the market. A low (zero) marginal cost firm benefits from offering just one big bundle. Such a firm obtains a higher profit compared to a firm that offers many bundles. With high marginal costs, the number of bundles increases with increasing customer valuation and/or heterogeneity. When a firm offers all the bundles, prices and profit increase as customer heterogeneity and valuation increase. When the number of offered items is high, individual sale (unbundling) may be preferred over bundling and bundling becomes an inferior strategy. Interestingly, a firm may benefit from unbundling the items when customers have higher valuations.
Starting Page	337
Ending Page	355
Page Count	19
File Format	PDF
ISSN	16179846
Journal	Information Systems and e-Business Management
Volume Number	8
Issue Number	4
e-ISSN	16179854
Language	English
Publisher	Springer-Verlag
Publisher Date	2009-04-28
Publisher Place	Berlin, Heidelberg
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Multi item bundling Pricing Information goods Digital goods Internet Management/Business for Professionals Business Information Systems Information Systems Applications (incl.Internet)
Content Type	Text
Resource Type	Article
Subject	Information Systems

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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