The Bundling Strategy: The One-Click Effect on Loss Aversion

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dc.contributor.authorNicolau, Juan Luisen
dc.contributor.authorSellers, Ricardoen
dc.date.accessioned2024-08-06T14:02:58Zen
dc.date.available2024-08-06T14:02:58Zen
dc.date.issued2019-09-20en
dc.description.abstractThis research aims to determine different levels of loss aversion in the context of price responsiveness and service bundling. Considering that nonlinearities in price responses may exist in a bundling strategy, this research tests the existence of different degrees of loss aversion, depending on whether an individual books one service independently of another (e.g., an airline ticket independently of accommodation) or as part of a bundle (e.g., a package that includes an airline ticket plus accommodation). We estimate a random parameter logit model. Empirical application shows that people who book a flight independently of accommodation are more loss averse than those who book a package that includes flight and accommodation. To explain this result, we propose the one-click effect so that people who find a price higher than expected (loss aversion) are more willing to accept it if the product is included in a bundle.en
dc.description.versionAccepted versionen
dc.format.extentPages 704-712en
dc.format.extent9 page(s)en
dc.format.mimetypeapplication/pdfen
dc.identifier.doihttps://doi.org/10.1177/1096348019876692en
dc.identifier.eissn1557-7554en
dc.identifier.issn1096-3480en
dc.identifier.issue4en
dc.identifier.orcidNicolau Gonzalbez, Juan [0000-0003-0048-2823]en
dc.identifier.urihttps://hdl.handle.net/10919/120857en
dc.identifier.volume44en
dc.language.isoenen
dc.publisherSageen
dc.relation.urihttp://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000532319500007&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=930d57c9ac61a043676db62af60056c1en
dc.rightsCreative Commons Attribution 4.0 Internationalen
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/en
dc.subjectairfaresen
dc.subjectbookingen
dc.subjectbundlingen
dc.subjectloss aversionen
dc.subjectlow costen
dc.titleThe Bundling Strategy: The One-Click Effect on Loss Aversionen
dc.title.serialJournal of Hospitality & Tourism Researchen
dc.typeArticle - Refereeden
dc.type.dcmitypeTexten
dc.type.otherArticleen
dcterms.dateAccepted2019-01-01en
pubs.organisational-group/Virginia Techen
pubs.organisational-group/Virginia Tech/Pamplin College of Businessen
pubs.organisational-group/Virginia Tech/Pamplin College of Business/Hospitality and Tourism Managementen
pubs.organisational-group/Virginia Tech/All T&R Facultyen
pubs.organisational-group/Virginia Tech/Pamplin College of Business/PCOB T&R Facultyen

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