Bundling Strategy For A Follower
Asian Journal of Social Sciences and Management Studies
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Title |
Bundling Strategy For A Follower
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Creator |
Chang, Ming-Chung
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Description |
A follower in a market always uses a bundling strategy as a marketing strategy to increase profit and to change its market status. In this paper, the relationship between the main goods and bundling goods is substitutive, independent, or complementary. A Stackelberg game is applied to capture the competitive relationship between a leader and a follower. A follower uses a bundling strategy as a marketing strategy, but a leader does not. This study reveals that a follower will become a leader when he (or she) sells two products that are low substitution goods. However, it induces a social welfare to decrease when a follower bundles goods. This paper illustrates that a bundling action can invert a follower’s market status. However, the inversion on a follower’s status does not promote the social welfare.
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Publisher |
The Clute Institute
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Date |
2010-12-30
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://clutejournals.com/index.php/JBER/article/view/758
10.19030/jber.v8i9.758 |
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Source |
Journal of Business & Economics Research (JBER); Vol 8 No 9 (2010)
2157-8893 1542-4448 10.19030/jber.v8i9 |
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Language |
eng
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Relation |
http://clutejournals.com/index.php/JBER/article/view/758/743
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