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- Title
Segmentation Versus Integration: The Case of Non-Homogeneous Groups.
- Authors
Spiegel, U.; Templeman, J.
- Abstract
The paper adds another dimension to the literature on bundling as a profit-maximizing strategy. We compare policies of joint consumption and segmentation of a profit maximizer. In the case of positive social influences between two population groups ‘bundling’ is preferred to segmentation, while under negative symmetric inter-group effects (based perhaps on race, religion, status etc.) segmentation is preferred. Our contribution lies in the examination of joint consumption versus segmentation under asymmetric inter-group effects, with and without price discrimination. This can occur when non-homogeneous groups share the same residency, school or other local public institutions.
- Subjects
PRODUCT bundling; TIE-ins (Marketing); PROFIT maximization; PRICE discrimination; SOCIAL influence; PUBLIC institutions
- Publication
Manchester School (1463-6786), 2004, Vol 72, Issue 1, p131
- ISSN
1463-6786
- Publication type
Article
- DOI
10.1111/j.1467-9957.2004.00384.x