Does Service Bundling Reduce Churn?

B-Tier
Journal: Journal of Economics & Management Strategy
Year: 2014
Volume: 23
Issue: 4
Pages: 839-875

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We examine whether bundling in telecommunications services reduces churn using a series of large, independent cross sections of household decisions. To identify the effect of bundling, we construct a pseudo‐panel dataset and utilize a linear, dynamic panel‐data model, supplemented by nearest‐neighbor matching. We find bundling does reduce churn for all three “triple‐play” services. The effect is only “visible” during times of turbulent demand. We also find evidence that broadband was substituting for pay television in 2009. This analysis highlights that bundling helps with customer retention in service industries, and may play an important role in preserving contracting markets.

Technical Details

RePEc Handle
repec:bla:jemstr:v:23:y:2014:i:4:p:839-875
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25