Accounting & Marketing

Examining the Impact of Add-on Product Features as an Inferential Cue

Abstract

Mark Anderson

In many technology-based and service industries, firms offer “add-on” products to consumers who are purchasing (or have already purchased) a base product. For instance, electronic retailers usually offer a wide range of accessories (e.g. carrying cases, memory cards, keyboards, lenses) to consumers who purchase digital cameras or notebook computers. In the airline industry, service add-ons often include additional baggage allowance, alcoholic beverages, movies and gaming consoles, often sold separately.