Two-phase bundling strategy with limited capacity

Bundling, as an effective marketing model, has been gradually applied in all fields since the 1970s. Although there has many researches on bundling, the two-phase bundling strategy is still rare. This study considers a retailer who has a limited capacity of products sells two types of independent products in two periods, which the retailer can choose to sell products separately (pure components, PC) or bundled (pure bundling, PB) in different period. So there are four strategies the retailer can choose, i.e., PC-PC, PB-PB, PC-PB, and PB-PC. The research compares them, and the results show that the best bundling strategy depends on the capacity of two products.