Bundling and Cooperation of Complementary Product

DOI

10.2991/emim-16.2016.100How to use a DOI?

Keywords

Complementary products; Bundling Strategy; Bundling effect; Cooperation

Abstract

We investigate product bundling strategy in a distribution channel with a common retailer and two complementary products suppliers. We get the thresholds of bundling effect for bundling strategy in different channel structures, and show that the cooperation of suppliers and retailer will improve the profitability of bundling strategy in some cases. The complementary suppliers cooperate to form an alliance only when the bundling effect are high enough, and the grand alliance could be stable when the allocation of bargaining power between channel members is appropriate. The bundle area will be expanded by the cooperation of retailer and by the cooperation of two suppliers when the degree of product complementarity is high enough.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Lingzhi Shao
PY  - 2016/04
DA  - 2016/04
TI  - Bundling and Cooperation of Complementary Product
BT  - Proceedings of the 6th International Conference on Electronic, Mechanical, Information and Management Society
PB  - Atlantis Press
SP  - 470
EP  - 474
SN  - 2352-538X
UR  - https://doi.org/10.2991/emim-16.2016.100
DO  - 10.2991/emim-16.2016.100
ID  - Shao2016/04
ER  -