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Mysteriet med produktpaket och förmånsprogram

Helgesson, Anna LU and Masko Mägi, Lovisa LU (2017) NEKH03 20171
Department of Economics
Abstract
The Swedish competition authority’s report from 2013 about the competition on the Swedish financial markets shows that bundling could be a threat to the competition on the Swedish banking market. Bundling contributes to higher switching and search costs for the consumers, which diminishes the customer mobility on the market. Reduced customer mobility leads to less competition. The Swedish competition authority therefore suggests an investigation of the use of bundling on the Swedish banking market. This thesis aims to map out the use of bundling and a special form of bundling known as bundled loyalty discounts on the Swedish banking market. The purpose of this thesis is to study the intentions behind the use of bundling and bundled loyalty... (More)
The Swedish competition authority’s report from 2013 about the competition on the Swedish financial markets shows that bundling could be a threat to the competition on the Swedish banking market. Bundling contributes to higher switching and search costs for the consumers, which diminishes the customer mobility on the market. Reduced customer mobility leads to less competition. The Swedish competition authority therefore suggests an investigation of the use of bundling on the Swedish banking market. This thesis aims to map out the use of bundling and a special form of bundling known as bundled loyalty discounts on the Swedish banking market. The purpose of this thesis is to study the intentions behind the use of bundling and bundled loyalty discounts among Swedish banks. The results of this thesis are based upon an empirical analysis of the use of bundling and bundled loyalty discounts by Swedish banks and a theoretical analysis based upon economic models and concepts about bundling. This study finds that the use of bundling and bundled loyalty discounts increase the switching costs for the consumers due to uncomparable and nontransparent bundles and loyalty programs. This thesis concludes that three of the four largest banks in Sweden also have incentives using bundling and bundled loyalty discounts in order to maintain a higher price and decrease the competition. (Less)
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author
Helgesson, Anna LU and Masko Mägi, Lovisa LU
supervisor
organization
course
NEKH03 20171
year
type
M2 - Bachelor Degree
subject
keywords
bundling, Swedish banks, switching costs, lock-in effects, financial literacy
language
Swedish
id
8911353
date added to LUP
2017-07-10 15:16:26
date last changed
2017-07-10 15:16:26
@misc{8911353,
  abstract     = {The Swedish competition authority’s report from 2013 about the competition on the Swedish financial markets shows that bundling could be a threat to the competition on the Swedish banking market. Bundling contributes to higher switching and search costs for the consumers, which diminishes the customer mobility on the market. Reduced customer mobility leads to less competition. The Swedish competition authority therefore suggests an investigation of the use of bundling on the Swedish banking market. This thesis aims to map out the use of bundling and a special form of bundling known as bundled loyalty discounts on the Swedish banking market. The purpose of this thesis is to study the intentions behind the use of bundling and bundled loyalty discounts among Swedish banks. The results of this thesis are based upon an empirical analysis of the use of bundling and bundled loyalty discounts by Swedish banks and a theoretical analysis based upon economic models and concepts about bundling. This study finds that the use of bundling and bundled loyalty discounts increase the switching costs for the consumers due to uncomparable and nontransparent bundles and loyalty programs. This thesis concludes that three of the four largest banks in Sweden also have incentives using bundling and bundled loyalty discounts in order to maintain a higher price and decrease the competition.},
  author       = {Helgesson, Anna and Masko Mägi, Lovisa},
  keyword      = {bundling,Swedish banks,switching costs,lock-in effects,financial literacy},
  language     = {swe},
  note         = {Student Paper},
  title        = {Mysteriet med produktpaket och förmånsprogram},
  year         = {2017},
}