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Fusion for ProfitHow Marketing and Finance Can Work Together to Create Value$
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Sharan Jagpal and Shireen Jagpal

Print publication date: 2008

Print ISBN-13: 9780195371055

Published to Oxford Scholarship Online: September 2008

DOI: 10.1093/acprof:oso/9780195371055.001.0001

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Bundling

Bundling

Chapter:
(p.157) 9 Bundling
Source:
Fusion for Profit
Author(s):

Sharan Jagpal (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195371055.003.0009

This chapter shows how the firm can use marketing-finance fusion to choose bundling strategies to increase its performance. Topics covered include: how to price interdependent products, how and when to use cross-couponing strategies, how to allow for production capacity constraints, and how to reward managers of multidivisional firms when cross-couponing strategies are used. It analyzes why many bundling strategies fail in the marketplace; in addition, it proposes new metrics for measuring consumers' willingness to pay for products and bundles.

Keywords:   brand management, bundling, conditional reservation prices, cross-couponing strategy, economies of scope, managerial compensation plans, one-stop shopping, production capacity, strategic alliances

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