Why do we value items purchased in a bundle less than those purchased individually?
The Bundling Bias
, explained.What is Bundling Bias?
The bundling bias describes our tendency not to use up all the experiences that are bought as a group, which means that we don’t get the full value of a bundle compared to an individual purchase.
Where this bias occurs
The bundling bias can occur for any purchases that are sold as a bundle instead of as individual items. Commonly, tickets and experiences are sold in bundles for a special price, and this is where we see the bundling bias occur. When we buy tickets in bundles, we are less likely to use all the items in the bundle, which means that we lose out on their full value.1
For example, the company CityPass offers customers in South California bundles to popular tourist attractions through their website.2 On the website, you can either purchase individual tickets to attractions or buy a bundle that gives you access to a few attractions, at a cheaper rate than if you bought tickets for each individual attraction separately. CityPass sells tickets to attractions such as LEGOLAND California Resort, which includes Legoland, the Sea Life Aquarium, and the Legoland Water Park. They offer a bundle in which you can buy a 2-day pass for all three attractions for only $150. The website informs you that by buying the bundle, you are saving almost $30.2
If you purchase the bundle, you are actually less likely to visit all three attractions than if you individually purchase tickets for each one. This is known as the bundling bias because we chose an option that offers us a better value for our money, but then don’t actually use every item in the bundle, which means that we don’t get the full value.
