Bundling as strategy of tourist attraction based on natural and cultural tourism in the ex-Surakarta residency

Purpose: Indonesia has many tourist attractions, but not all places are well known, which makes them have no visitors. The objectives of this study are to find out how the condition of attractions in each district/city in the Surakarta Residency and how to increase tourist visits to tourist attractions. Research methodology: The research design is qualitative research. Data are presented in descriptive form, with in-depth and flexible analysis. Sampling by purposeful sampling, the sample chosen depends on the research objectives without regard to the ability of the generalist. The method used is implementing a bundling marketing strategy, which issues product bundling and price bundling in the form of several travel packages. Results: There are two tourist attractions that are already developing and which are still in the form of potential. Travel agents can offer tourist attractions that have developed to tourists by bundling through tour packages. Tourist attractions that are still potential but attractive can be offered as well. So that all tourist attractions will get tourist visits. Limitation: This research was conducted at the Ex-Residency of Surakarta, in Central Java, Indonesia. There are many types of tourist destinations, such as cultural, natural, educational, religious, sport, museum, shopping and culinary heritage tours. So that the bundling is only valid for the area. Contribution: Application of  bundling is one way to determine the selling price of a product in this case a tourism product, so that tourism products in the form of tour packages can be sold at attractive prices, which are expected to increase tourist visits. Keywords: Bundling strategy, Tourist attraction, Tourist collaboration, Spirit of gotong royong, Developing touris

Interactive bundle pricing strategy for online pharmacies

Online retail pharmacies usually price their products differently from traditional drugstores. Based on real-time consumer behaviors, this paper proposes a dynamic bundle pricing strategy to maximize the pharmacy's profit. Given free shipping thresholds and consumer budgets, we propose a mixed-integer nonlinear programming model and a heuristic to sequentially price customized bundles. We further conduct a numerical study using the data from a leading e-pharmacy in China. Our computational results indicate that the proposed model not only improves the e-pharmacy's profit by attracting more customers but noticeably contributes to consumer surplus. Through sensitivity analysis, our model is proved to be robust under various scenarios.</p

Dynamic and targeted bundle pricing of two independently valued products

Bundling is when two or more products are offered as a single unit and at a price lower than the sum of the individual prices of the products. We study a multi-segment market in which a retailer aims to clear the inventory of an item by bundling it with a second product which is independently valued. We investigate the question of how dynamic and segment-specific bundle pricing impacts retailer’s revenue. We develop a revenue model that integrates the dynamic and segment-specific aspects of the pricing decisions, and present a computational study to analyze their revenue impact relative to a price promotion for the individual item only. The computational results indicate that the bundle offers are most effective when the initial inventory of the item under consideration is high. The results also demonstrate that dynamic pricing is beneficial when the initial inventory of the item is low. An additional revenue improvement is observed when the price of the bundle is dynamically optimized. In the computational study, segment-specific pricing is observed to have no direct impact on revenue when prices are static; segment-specific and dynamic pricing, however, can bring about substantial revenue improvements that are an increasing function of the initial inventory level of the item. We consider the correlation in consumers’ valuations of the bundled products, and show that dynamically priced and segment-specific bundle offers yield a robust revenue performance, mitigating the potentially revenue-diminishing impact of positive correlation in consumers’ valuations of the products