The Impact of Product Bundling on Store Sales. A Case Study of Simbisa · Electronic Theses and Dissertations

Author: Mahori, Ethel. A
Title: The Impact of Product Bundling on Store Sales. A Case Study of Simbisa
Abstract: Bundling is a marketing strategy that involves an offer of vacation packages, selling at least two
separate products at one single price, Martins et al., (2021). Bundling, a practice of marketing
two or more products or services as a specially priced package Guo et al., (2021). Businesses
engage bundling strategies in order for them to sell many products at lower costs, to contract
consumer surplus, and to create value for consumers. VAR and VECM models were implemented
in the analysis of data using Eviews software. The research used monthly time series data from
December 2010 to Dec 2021. The main objectives of the study were to determine the long run and
short run impact of bundled sales, non- bundled sales and price on sales. The findings of the study
revealed that overall store sales are highly and positively influenced by bundled products sales,
and this is in agreement with Dedernger and Kumar (2013), where he stated that bundling is an
effective tool used to increase sales and profit. Results have also revealed that bundled sales and
non-bundled sales have a positive impact on sales whereas price has a negative impact on total
sales in the long run. The study recommends that Chicken Inn shops consider offering promotions
such as bundling to boost sales revenue. They should also be cautious in setting prices to avoid
negatively impacting sales revenue and experiment with different bundling strategies to find the
most effective approach. The study further recommends that Chicken Inn shops should continually
monitor and adjust their strategies to remain competitive in the industry. Future research could
examine the impact of other variables such as costs and inventory levels on sales revenue and
profitability, explore the effectiveness of different bundling strategies in different contexts, and
examine the impact of bundling on consumer behavior and decision-making.
Date: 2023
Publisher: BUSE
Keywords: Store Sales
Supervisor: Mr. Kanjodo

Item sets: Department of Statistics and Mathematics

Media: Statistics & Maths Mahori.pdf