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Topic: Product bundling

	White Papers
		Since production environments by their nature need to be stable environments and do not tolerate disruption of services, it is common that any new product targeted for production use will need to be fully tested and evaluated to insure that it works properly in a production setting.
		When a technology product is first introduced, there is a period of time when the product is an unknown entity and needs to be fully tested in production settings to insure that it functions properly and meets the stated goals and objectives.
		This means that for a mature product to be a solid investment, the pay-back period should be very short, or the customer needs to be comfortable with the prospect of using the product after the vendor has stopped or reduced the level of support on the product.
	www.myxa.com /wp_tplc.htm (4368 words)

	Product bundling - Wikipedia, the free encyclopedia
		Product bundling is a marketing strategy that involves offering several products for sale as one combined product.
		This strategy is very common in the software business (for example: bundle a word processor, a spreadsheet, and a database into a single office suite), and in the fast food industry in which multiple items are combined into a complete meal.
		Product bundling is most suitable for high volume and high margin (i.e., low marginal cost) products.
	en.wikipedia.org /wiki/Product_bundling (279 words)

	Pricing for Software Product Manager (Site not responding. Last check: 2007-10-09)
		Products that are used for teaching and that a company can expect the students to purchase later in their professional career and all other products.
		Product bundling is when two products are integrated into a single package.
		Bundling can be “pure” or “mixed.” Pure bundling is when a vendor does not offer any other option but the bundled products.
	www.pragmaticmarketing.com /productmarketing/magazine/3/5/0507ds1.asp (10439 words)

	Making a Bundle with Bundling (Part 1)
		Bundling is selling a quantity of a single product or a group of one or more products to customers.
		The population of customer behavior to which you apply the quantity bundle offers is the primary determinant of the success and revenue benefit of the bundle.
		Their spending with the bundle will likely be higher than it would be without the bundle, but the customer gains greater confidence in their estimate of service costs.
	www.servicelevel.net /rating_matters/newsletters/issue02.htm (1869 words)

	Joys of Bundling - Mises Institute
		Robert Bork is decades behind the times in antitrust scholarship if he believes there is no efficiency rationale for product bundling ("it produces no significant efficiencies") or exclusive dealing contracts ("their sole function is to exclude rivals"), as he states in his latest critique of Microsoft (Letters to the Editor, July 22).
		One obvious reason why product bundling is efficient is that consumers like their products bundled and it is profitable for business to accommodate those preferences.
		Bundled products often sell for a lower price than if they were all sold separately, and can eliminate the costs of haggling over the prices of separate items.
	www.mises.org /story/15 (533 words)

	Product lining - Wikipedia, the free encyclopedia
		Product lining is the marketing strategy of offering for sale several related products.
		Unlike product bundling, where several products are combined into one, lining involves offering several related products individually.
		If a line of products is sold with the same brand name, this is referred to as family branding.
	en.wikipedia.org /wiki/Product_lining (455 words)

	Texas Lawyer - Bundling Products and the Legalities of Sweepstakes
		The "bundling" of products is a rapidly developing area of antitrust law.
		This might be the case when the relative size of the two markets or the relative prices of the bundled products are such that a nominal discount on the "tying" product (GPS units) would have a disproportionate impact on purchasing decisions.
		A bundling program will not create liability for attempted monopolization unless ShinyParts' share of the monitor market is such that there is a "dangerous probability" that the bundle may lead to a monopoly in that market.
	www.law.com /jsp/tx/PubArticleTX.jsp?id=1090180184563 (3414 words)

	The Art of Product Bundling
		Bundling can also be used as a “carrot” to motivate customers to spend more of their jan/san-supply dollars with one distributor.
		In marketing circles, bundling is commonly defined as a selling strategy where two or more products are sold at one price, often at a discount to the customer.
		It’s one thing to have a sales staff that thinks of product bundling instinctively, but it’s even more important to create a corporate mindset regarding the best way to move product and boost margins.
	www.cleanlink.com /sm/article.asp?id=2908 (1752 words)

	The Appeals Court Ruling: What's in it for Linux? \| Linux Journal
		In considering whether incompatible products or product bundling constitute unlawful acts, the appeals court was mindful of the potential that the courts could stifle technological innovation.
		If all product bundling by monopolies was illegal, the court explained, consumers--including the terminally computer illiterate--might have been forced into absurdities such as purchasing all the various components (the keyboard, the CPU, etc.) from separate companies.
		Bundling browser technology with the operating system is an excellent and beneficial idea, one that has been emulated by the KDE and GNOME developers.
	www.linuxjournal.com /article/4861 (2359 words)

	Recent Telecommunications Research Recent work by Pablo T. Spiller
		The phenomenon of "product bundling," in which two or more discrete products or services are sold jointly rather than separately, is widespread.
		While such motives may explain some instances of product bundling, they not only leave untreated the appearence of product bundling in environments where competition is strong, but they fail to analyze the organizational implications that bundling, under these circumstances, may have.
		To a large extent, this originates in that most extant analyses of product bundling are undertaken in a stable environment.
	faculty.haas.berkeley.edu /spiller/telabs.htm (3046 words)

	Clean Washington Center (Site not responding. Last check: 2007-10-09)
		Depending on the process and the end product, either a percentage of recycled feedstock can be used in a formulation, or when technically feasible, 100% recycled-content feedstocks are used.
		The advantage of combining a product with another established product is that the distribution channels are in place.
		The main benefit for the established company is that bundling may open up markets for their product that they could not have reached without packaging the two together.
	www.cwc.org /market/mkt6.htm (1699 words)

	PEAK
		Their analysis shows that mixed bundling is the dominant strategy: "By offering a menu choice which includes both the original and the components, the producer can extract consumer surplus more completely via consumer self-selection." They also derive conditions under which pure unbundling outperform pure bundling, even when bundling reduces costs.
		A print-on-paper journal is a bundle of issues, each of which is a bundle of articles and other items, each of which is a bundle of bibliographic information, an abstract, references, text, figures, and so forth.
		The specification of product bundles turns out to be a quite difficult task because the space of possible bundles is extraordinarily large, even if treats each component of a document as identical across documents (e.g.., do not define articles by two different authors to be different commodities for the purpose of bundling).
	www-personal.umich.edu /~jmm/papers/peak-harvard97 (8135 words)

	Netilla Security Platform VPN and VASCO's Digipass Pack Strong Authentication Marketed and Sold as Bundle
		The companies will showcase the product bundling at CeBIT 2004, the world's leading information technology fair in Hanover (Germany) from March 18-24 2004 on VASCO's booth in Hall 6 (Booth G 01).
		The product bundling is especially suited for companies and institutions active in the healthcare, government and financial sectors and will be sold via distributors offering both product ranges.
		With 10 million Digipass products sold and ordered, VASCO has established itself as a world-leader for strong Identity Authentication with 250 international financial institutions, approximately 1400 blue-chip corporations, and governments representing more than 60 countries.
	www.netilla.com /pressRelease/release_81.htm (797 words)

	DOJ/Antitrust
		Bundling two products in a way that confers some positive technological benefit but also anticompetitively forecloses rivals raises very troubling issues about whether courts can really assess and weigh the magnitude of the conflicting effects.
		Similarly, my co-authors and I concluded that product design decisions that advantage an associated defendant product over rival products should not be deemed a technological tie unless the product design lacks any technological benefit.
		If Microsoft bundled software to achieve technological benefits that would not be available if buyers combined their own software choices, then bundling should be permitted.
	www.usdoj.gov /atr/cases/ms_tuncom/major/mtc-00027209.htm (3900 words)

	COMMODITY BUNDLING BY
		In his classic analysis of block booking of feature films, George Stigler shows that it may be profitable for a monopoly seller of two such products to bundle them by requiring a buyer to take both in order to get either.
		For simplicity, and to permit comparisons with the earlier bundling literature, I stick with the case of independent demands.
		In the analysis of tying contracts as metering devices, it is usually assumed that the two products involved are complements and that buyers with higher reservation prices for the tying product demand more units of the tied product at any price.
	www.utdallas.edu /~liebowit/knowledge_goods/schmalensee/schmalensee.htm (1360 words)

	PricTheo
		If they can bundle and sell to all types, however, MS can charge $300, the minimum that any group is willing to pay for the entire bundle.
		Bundling is not, strictly speaking, price discrimination, since the above example does not rely upon knowing what any individual's willingness to pay is. People are known only statistically as types, but cannot be identified individually as one type or another.
		However, bundling can be used to attain the same ends that price discrimination, without making the price discrimination look so explicit.
	www.rh.edu /~stodder/BE/PricTheo.htm (1330 words)

	ACES News
		Intellectual property rights, patent protection, vertical coordination, brand management, product bundling, extensive levels of research and development, and large capital flows have become important drivers of their behavior.
		Risks for these firms are great because product life cycles are highly variable and most innovations never make it into the marketplace.
		Alternatively though, the use of product bundling and product "renting" indicate that the market is far from competitive.
	www.aces.uiuc.edu /news/special-issues/biotech/op2.html (737 words)

	The Effects of Product Bundling in Duopoly
		This paper studies the incentives for multiproduct duopolists to sell their products as a bundle.
		It is shown that contrary to the monopoly case bundling may reduce profits and increase consumer rent.
		"Bundling as a Facilitating Device: A Reinterpretation of Leverage Theory," Economica, London School of Economics and Political Science, vol.
	ideas.repec.org /p/lmu/muenec/477.html (521 words)

	The Carrypad UMPC journal.: UMPC product bundling. Nokia and Linksys team up.
		Both Carrypad and Ultranauts carried journals about this - UMPC's could be subsidised by offering them in bundles with data or content packages.
		I wrote mainly about subsidies with content (for example, offering TV content or Video Telephony packages.) but with the announcement that Linksys and Nokia have teamed up to offer a a wifi/tablet package, I can now see the opportunities for subsidies with data plans.
		I had thought that the Nokia 770 would really be pushed as a partner product for a mobile phone but this announcement shows that Nokia are not scared to take a step or two away from mobile carriers and look at other pricing models.
	www.carrypad.com /journal/2006/04/umpc-product-bundling-nokia-and.html (250 words)

	WebVCR Offline Browser Bundling (Site not responding. Last check: 2007-10-09)
		Bundling WebVCR with your modem product adds significant value to your product, delivering an application that significantly enhances the Internet experience for your customers, and also provides you with a means to differentiate your product from others.
		This gives them fast access to their product information or their competitors' product information wherever they are, even when they don't have an Internet connection.
		As a result, it improves the performance of your servers during peak hours and allows your users to read the information at their convenience at greatly accelerated speeds.
	www.netresultscorp.com /fs_webvcr_bo.html (385 words)

	Pathfinder - Download Manager for developers and affiliates.
		By putting all of the products you resell into a single point download you can promote all of the applications you manage as an affiliate sales representative.
		By using your own download manager, you are able to get your product into the hands of your customer without using up so much of your bandwidth.
		We know of game authors that are currently doing the same thing as well as reviewers that will be putting programs that they review into Pathfinder so their readers can have quick access to the programs they have reviewed.
	www.lincolnbeach.com /pathfinder.asp (599 words)

	AT&T, SBC Gain Some Ground With Product Bundling, DSL - Technology News by TechWeb
		By Sharply declining profits at AT&T and SBC Communications underscore the struggles of the entire telecommunications industry, but both firms are fighting back with an aggressive product bundle push.
		The product bundle at issue is simply the packaging of different services in a single bundle, typically local and long distance calling along with broadband.
		Another bright spot for SBC was its 446,000 increase in DSL broadband lines to reach a total of four million -- a 60 percent increase in the past year.
	www.techweb.com /wire/26805282 (353 words)

	NERA Economic Consulting \| Publication
		The ACCC is particularly interested in imputation tests in the context of product bundling in telecommunications.
		The authors explain that an anticompetitive vertical price squeeze occurs when a vertically integrated firm with market power in the provision of an input essential in the production of a final product sets the margin between wholesale (or access) and retail prices such that an (equally) efficient competitor will be unable to remain viable.
		In addition to this report, the ACCC commissioned Anticompetitive Bundling Strategies, which discusses approaches for identifying whether bundling strategies constitute anticompetitive behavior.
	www.nera.com /Publication.asp?p_ID=1172 (374 words)

	Price
		They would sell their pet food (and other products) at deep discounts, with free shipping and handling (their products were not cheap to ship) in order to encourage customers to use their service.
		An odd alternative to this is the issue that occurs when a product is in short supply early in its lifecycle (Apple's iPod) that is the resold at higher than retail by the initial buyers to those with the higher demand for the product.
		Or similarly the customer has the software as a result of the bundled purchase, does not use it until the need arises (some time later), and now uses the software rather than consider competing offerings from other sources since the one the user has is now 'free'.
	www.udel.edu /alex/online/price.html (3141 words)

	SSRN-Paying for Loyalty: Product Bundling in Oligopoly by Joshua Gans, Stephen King
		In recent times, pairs of retailers such as supermarket and retail gasoline chains have offered bundled discounts to customers who buy their respective product brands.
		We show that a pair of firms can profit from offering a bundled discount to the detriment of other firms and consumers whose preferences are farther removed from the bundled brands.
		Indeed, when both pairs of firms negotiate bundling arrangements, there are no beneficiaries and consumers simply find themselves consuming a sub-optimal brand mix.
	papers.ssrn.com /sol3/papers.cfm?abstract_id=891509 (309 words)

	Bagging Machinery - Felins Specialty Packaging Products
		Pak-Tyer 2000 series tyers are manufactured for a wide variety of applications in many different industries.
		The Flex Strap System offers heat sealed stretch film bundling for many industries including; wood molding and other wood products, extrusions, textiles, paper, printing and more.
		From bagging units that automatically size bag to each bundle, to the TP Series baggers that are custom designed for more uniform product sizes and higher production flow.
	www.felins.com /products.htm (277 words)

	David Crow: Divestco - Market Research and Product Strategist (Site not responding. Last check: 2007-10-09)
		Divestco is a publicly traded oil & gas software, services, data and consulting company, that was recently ranked 2nd on Alberta Venture’s “Fast 25 over 20 million” list of the fastest growing companies in Alberta.
		We are currently looking for a Market Research & Product Strategist to lead us in the areas of market research, competitive analysis, pricing strategy and product bundling.
		A hands-on team player, this position is required to develop an understanding of our customers and their needs, our industry and our target markets relevant to our products and services.
	davidcrow.ca /jobs/1170/divestco-market-research-and-product-strategist (803 words)

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