The effect of incentives on customer evaluations of service bundles

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jbusres.2009.01.011 Byline: Melinda L. Andrews, Ray L. Benedicktus, Michael K. Brady Abstract: Effects of service bundle incentives on perceived value, search intentions, and switching intentions are assessed in two independent studies. The first study demonstrates that service bundling influences switching and search intentions through perceived value. Results related to bundle incentives support the salience of the convenience associated with consolidating charges onto one bill. Further analysis reveals that explicit valuation of savings creates higher perceived value than convenience alone; however, search and switching intentions are unaffected by incentives or valuation thereof beyond the convenience effect. A second study replicates key parts of these results. Research and practical implications are discussed. Author Affiliation: (a) College of Business, University of Southern Mississippi, Hattiesburg, MS 39406, United States (b) College of Business and Economics, California State University - Fullerton, 800 North State College Boulevard, Fullerton, CA 92834-6848, United States (c) College of Business, Florida State University, Tallahassee, FL 32306, United States Article History: Received 30 March 2007; Revised 12 May 2008; Accepted 21 January 2009