*
The research explored the integration layers used to create value for-money to both customers and marketers in price bundling strategy. With the help of a diagnostic research carried out in a departmental store, we identified that there is no congruence between the customer expectation and marketers’ supply in establishing product mix for price bundling strategies. Hence an experiment was carried to find out the appropriate demand sensing system that creates promotional spins. We try to leverage how we can deploy reference dependent model of pricing and modified exponential smoothing method (with additional inputs) of demand forecasting to get the desired result. As a result, we strongly recommends the marketers to use the reference dependent pricing to fix the promotional price and to forecast the demand for the product mix, use shipment history of ‘focal’ product to measure linearity and open customer orders of ‘tied-in’ product to measure the exponential growth.
Exponential Smoothing, Price Bundle, Product Bundle
