The Benefits of Bundling Material Goods with Moderate Usage Complementarity

Abstract Firms can bundle material goods together in various ways, including based on their usage complementarity (i.e., the likelihood that the goods are used together). While prior research has investigated the consequences of bundling products that are high (vs. low) in usage complementarity, the current research uncovers the benefits of bundling products that are moderate in usage complementarity (e.g., a coffee mug and a folding chair). Thirteen pre-registered experiments show that bundling products that are moderate in usage complementarity offers companies a unique advantage: Bundling these products prompts consumers to view them as relatively more experiential compared to bundling products that are low or high in usage complementarity and compared to their non-bundled components. This perceptual shift occurs because bundling products with moderate usage complementarity increases contextualization—the degree to which consumers consider the setting in which the products could be used rather than the use of the products themselves. It also changes consumer behavior in ways that can benefit firms (e.g., increasing purchase likelihood when seeking an experience). This research offers theoretical contributions to the bundling and material-experiential literatures and practical implications for companies interested in different bundling approaches and obtaining the advantages of heightened experiential perceptions for material goods.