1 Sequence Effects in Service Bundles: Marketing and Operational Implications

Researchers in psychology and behavioral economics have shown that the sequence of events plays an important role in the way we evaluate experiences. They have shown that the perception of the peak event, the last event, and the general trend of the sequence are important in predicting overall memory of an experience. Building on multi-disciplinary streams of past research, we investigate whether the sequence schedule of discrete events within a service bundle impacts customer repurchase behavior. Using a unique archival data source provided by a renowned performing arts venue, we build and test an econometric model to predict season ticket subscription repurchase and to determine if the temporal placement of events impacts repurchase. We find evidence of peak, end, trend, and spread effects and discuss the importance of sequence in determining service design and scheduling. These results have implications for effective service design for a wide range of industries