Consumer Savings in Complementary Product Bundles

Abstract

Complementary bundling is a selling strategy whereby two or more products which are functionally related are sold at one combined price. Using a survey of prices, the findings indicate that while on average consumers save about 8% by purchasing bundles, in contrast to popular belief, they may at times pay significantly higher prices by purchasing the bundle, rather than buying the bundle items individually. Consumer savings in complementary bundles range from 57% to −18%, and may be affected by bundle characteristics such as the number of items in the bundle and the level of variation in the value of bundle items. The findings also indicate a significant amount of variation in savings, both within, and between categories.

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