Price bundling in public recreation

Abstract

This article examines the use of price bundling as a marketing technique for recreation services. The use of conjoint analysis allows the researcher to determine consumers’ part‐worth utilities for various service attributes. This information can then be used to design a service bundle or package and determine the price to be charged. This approach to service design is applied to an actual case involving the visitor accommodations at a state department of parks. Consumers are segmented in order to enhance the analysis and provide management with more useful information. The limitations of the study and methodology are discussed along with strategic implications for park managers. Finally, suggestions are provided for future research in this area.

Keywords:

• Price bundling
• conjoint analysis
• service
• design
• state parks
• packaging
• commodity bundling
• consumer utility