1、Bundled Benefits of Retail Memberships in MexicoApril 2024Mame Maloney,Jeff D.Brazellccianet.org Bundled Benefits of Retail Memberships in Mexico 1 CONTENTS Executive Summary.2 Literature Review.5 A.Retailer Benefits of Bundling.5 B.Consumer Price Savings from Bundles.7 C.Consumer Perception of Bund

2、les.8 Bundling Strategies Used by Retailers.10 Consumer Survey.15 A.Membership and Multi-homing.16 B.Importance of Product Features to Customers Purchase Decisions.19 C.Consumers Willingness to Pay for Membership Attributes.20 D.Consumer Preferences.23 E.Frequency of Use.32 Conclusion.38 :Survey Met

3、hodology.39 :Additional Survey Results.40 Bundled Benefits of Retail Memberships in Mexico Bundled Benefits of Retail Memberships in Mexico 2 Executive Summary123 _ Customer benefit programs are gaining notable traction in Mexico,reflecting a global trend towards retailers offering a variety of cust

4、omer benefits to compete in the highly competitive retail space,including subscription-based models that package multiple attributes.With an appreciating currency,decreasing unemployment,and increasing availability of internet access,4 the Mexican consumer is poised more than ever to take advantage

5、of customer benefit programs that leverage technology to bring consumers value.This paper examines retail memberships the ways retailers are packaging collections of benefits in the Mexican market today,presenting findings from a survey assessing Mexican consumers reactions to the attributes and fea

6、tures of customer benefit programs.Our research follows an analogous study of the US market(“US Bundling Study”).5 We find that although the range of features included in retail membership in Mexico is less diverse than in the US market,Mexican consumers enjoy the available features and would be eag

7、er to see bundled offerings expand.Bundled6 goods and services have the potential to benefit both consumers and sellers.Retailers benefit from offering bundled goods,for instance via cost and efficiency savings,reduced customer attrition,mitigation of demand uncertainty,increased revenue generation,

8、and product differentiation.7 Retailers may offer bundles including items from partner brands,synergistically benefitting both brands.Retailers cost savings may be passed through to consumers via lower prices.Academic studies have estimated bundled price savings across a variety of product markets,w

9、ith 1 This research was funded by the Computer&Communications Industry Association(https:/www.ccianet.org/).2 Mame Maloney is a Principal at the Brattle Group(Mame.MaloneyB).3 Jeff Brazell is the director of the Center for Strategic Analytics and a Professor(Lecturer)at the David Eccles School of Bu

10、siness at the University of Utah(jeff.brazelleccles.utah.edu).4 See,e.g.,“Mexico Country Commercial Guide:Internet and Digital Economy,”International Trade Administration,November 5,2023,available at https:/www.trade.gov/country-commercial-guides/mexico-internet-and-digital-economy,last accessed Apr

11、il 15,2024;Daniel Zaga and Alessandra Ortiz,“Mexico economic outlook,2023,”Deloitte,available at https:/ accessed April 15,2024.5 Rosa Abrantes-Metz,Mame Maloney,and Jeff Brazell,“Bundled Benefits of Retail Memberships,”December 2023,available at https:/ccianet.org/research/reports/bundled-benefits-

12、retail-memberships/.An abridged version of this paper was published as“Unraveling The Bundled Benefits Of Retail Memberships,”Law360,January 29,2024.6 “Bundle”is a concise term commonly used to describe any service with multiple attributes offered as a package.The term“bundle”is used for simplicity

13、and brevity in this paper to refer to customer benefit programs with multiple attributes offered as a package,including both paid subscription memberships and free memberships such as loyalty programs.7 Section II.A below provides an overview of the literature discussing retailer benefits from bundl

14、ing.Bundled Benefits of Retail Memberships in Mexico 3 several studies documenting typical savings of approximately 10%.8 However,the literature also provides examples of product bundles costing more than the individual components purchased separately.9 This suggests that in some cases,bundles may p

15、ose a challenge to consumers in assessing the total price and value of the bundle.Aside from pricing considerations,bundles have the potential to enhance customer satisfaction by helping simplify purchase decisions.10 Bundles can also provide customers with features they may not have purchased on a

16、standalone basis,and they may benefit from the availability of these options.However,bundles can also reduce customer flexibility if components are not sold on a standalone basis.Bundled packages may not cater to individual preferences,as they are often designed to appeal to a broad audience.Consume

17、rs may feel that they have to compromise on their specific needs,in particular if they feel constrained by provider choice limitations(for example,feeling that they are forced to purchase a bundle that offers free Disney+,when they would really prefer Netflix).To assess consumer reaction to bundled

18、elements,we conducted a consumer survey,collecting responses from 1,001 participants.The survey assessed consumers current membership subscriptions,their attitudes towards the features included with each membership,their frequency of use of such features,and the trade-offs consumers make when choosi

19、ng between different memberships with different attributes.To assess these elements,we administered a survey questionnaire focusing on paid memberships at four of the largest Mexican retailers:Walmart Pass,Sams Club,Costco,and H-E-B Prime.Our findings are described in detail in Section IV.Our key fi

20、ndings are as follows.Customers Enjoy(or Would Enjoy)Bundled Features in Retail Memberships When assessing both the current features of existing retail memberships,or hypothetical bundled features that could be included,the majority of Mexican consumers respond with delight.Such customers also antic

21、ipate making use of such features on a frequent basis.Even given the overall positive reception garnered by membership features,we still observe heterogeneity among consumer reactions.For each feature,some consumers respond with delight,some finding the feature“as expected,”and some indifferent whet

22、her or not it is included.We observe very few respondents reacting negatively to the inclusion of features in membership bundles,even if they do not plan on using the feature.This suggests that customers do not feel 8 Section II.B below provides an overview of the literature discussing price savings

23、.9 Estelami,Hooman,“Consumer Savings in Complementary Product Bundles,”Journal of Marketing Summer 1999:107-114.The findings in the paper are based on gathering prices on 400 product bundles in fast food,computer equipment,and photography equipment.10 See Harris,Judy and Edward A.Blair,“Consumer Pre

24、ference for Product Bundles:The Role of Reduced Search Costs,”Journal of the Academy of Marketing Science,34(4),2006,506-513.Bundled Benefits of Retail Memberships in Mexico 4 constrained when a benefit is offered from a non-preferred provider,but instead are simply indifferent.Customers Often Subsc

25、ribe to Multiple Memberships Subscribing to multiple competing membershipsalso known as“multi-homing”is common among respondents.This reinforces the conclusion that in general,consumers do not feel constrained by provider choice limitations.If provided with a bundle component from a non-preferred br

26、and,consumers are free to also patronize their preferred brand.Specifically,we find that big-box store members are very likely to subscribe to another big-box membership(81%on average).When examining a larger set of paid retail memberships,the majority of respondents multi-home,with 78%of respondent

27、s with paid memberships having two or more such memberships,57%have three or more memberships,and 22%have five or more paid memberships.11 Big-box store members are likely to also be members of other retail membership programs and vice versa.We observe 93%of Amazon Prime subscribers have a paid memb

28、ership with at least one other retailer.12 We similarly observe 98%of Meli+subscribers have a paid membership with at least one other retailer.13 How Membership Features Drive Consumers Purchase Decisions Of all membership attributes explored,price plays the most important role in respondents purcha

29、se decisions,suggesting the necessity for retailers to offer competitive prices.Other membership featuressuch as video streaming,free shipping,or store credit cardall have the ability to influence consumers purchase decisions between retail memberships.We find that each big-box store membership is a

30、ssociated with positive consumer surplus,which quantifies the net benefit that consumers receive when they purchase a good or service at a price lower than what they would be willing to pay.Market-wide,consumer surplus for all four retail memberships is approximately MXN$1.4 billion.11 In addition t

31、o Walmart Pass,Sams Club,Costco,and H-E-B Prime memberships,we additionally inquired whether respondents had purchased memberships at Amazon Prime,Meli+,Rappi Delivery,and UberPass.12 Among Walmart Pass,Sams Club,Costco,H-E-B Prime,or Meli+.13 Among Walmart Pass,Sams Club,Costco,H-E-B Prime,or Amazo

32、n Prime.Bundled Benefits of Retail Memberships in Mexico 5 Literature Review _ As discussed in the US Bundling Study,various aspects of bundling have been explored in the academic literature,including quantifying consumer price savings from bundles;discussions of retailer benefits of bundling;and st

33、udies of consumer perceptions of bundled goods.A.Retailer Benefits of Bundling Retailers derive benefits from offering bundled goods,including cost and efficiency savings,reduced customer attrition,mitigation of demand uncertainty,increased revenue generation,and product differentiation.Cost and eff

34、iciency savings.Sellers generally save on marginal costs when they bundle goods or services because it reduces per unit transaction costs with buyers and per unit negotiation costs with upstream suppliers.These savings,which may come from packaging,inventory maintenance,accounting,and marketing cost

35、s,14 often exceed any additional fixed costs companies may incur by supplying bundled goods.15 For example,bundles allow sellers to make efficient joint orders from their upstream suppliers rather than have to order individual products,reducing fixed transaction costs per purchase.16 Bundling also g

36、ives certain types of sellers more bargaining power with their upstream suppliers,allowing them to purchase inputs at lower costs compared to other sellers.17 In addition,sellers can spend less on marketing each individual good to consumers.18 Enhancing Customer Loyalty.Bundling often reduces the co

37、sts of customer retention for retailers.For example,Gopalakrishnan(2021)found that the customers who had the highest number of pre-loyalty program visits and the lowest number of pre-loyalty visits experienced the largest reductions in the likelihood they would go on a hiatus from patronizing a busi

38、ness after a loyalty program is 14 Pindyck,Robert S.,“Lecture Notes on Bundling and Brand Proliferation:15.013 Industrial Economics for Strategic Decisions,”Sloan School of Management MIT,July 2018.15 Evans,David S.and Michael Salinger,“An Empirical Analysis of Bundling and Tying:Over-the-Counter Pa

39、in Relief and Cold Medicines,”Center for Economic Studies and ifo Institute,Working Paper No.1297,October 2004.16 Kohli,Rajeev and Heungsoo Park,“Coordinating Buyer-seller Transactions Across Multiple Products,”Management Science,40(9),1994,1145-1150.17 Crawford,Gregory S.and Ali Yurukoglu,“The Welf

40、are Effects of Bundling in Multichannel Television Markets,”American Economic Review,101(2),2012,643-685.18 “How does the Right Loyalty Program Help in Lowering Operational Costs?,”Novus Loyalty,May 25,2022,https:/ accessed November 8,2023).Bundled Benefits of Retail Memberships in Mexico 6 introduc

41、ed.19 In comparison,moderate visitors only experienced a non-significant increase in frequency of visit rather than decrease in attrition rates.This may be because the most frequent customers anticipate the loyalty program will allow them to receive rewards and give them a high return,while least fr

42、equent customers may be incentivized to increase their use of the service.20 Furthermore,bundling helps companies reduce consumer churn when the seller is part of a declining or turbulent market where there is high turnover in services or service providers.In particular,a seller may choose to bundle

43、 both the declining good and a more popular good(e.g.,cable television and broadband)to encourage consumers to stay with their services rather than swap to a new service provider who may offer only the updated good.21 Mitigating demand uncertainty.Bundling allows sellers to more effectively mitigate

44、 losses caused by demand uncertainty.This is because it gives the seller ability to clear excess inventory of the primary product if supply exceeds demand,and allows them to extract additional value from the secondary product when demand exceeds supply.22 Increased revenue generation.Many of the bus

45、iness efficiencies created by bundles are through increased revenue generation.The highest price a customer is willing to pay for a product varies greatly from product to product.Bundles can increase revenue by smoothing out that variation.23 Bundling can also increase revenues by enhancing consumer

46、 loyalty to the seller or brand,making it more likely they will purchase from these sellers repeatedly and engage in word-of-mouth marketing.24 19 Gopalakrishnan,Arun,et.al.pp.3,28.20 Gopalakrishnan,Arun,et.al.pp.35.21 Prince,Jeffrey and Shane Greenstein,“Does Service Bundling Reduce Churn?,”Journal

47、 of Economics and Management Strategy,23(4),2014,839-875.22 Cao,Qingning,Xianjun Geng,Kathryn E.Stecke,and Jun Zhang,“Operational Role of Retail Bundling and Its Implications in a Supply Chain,”Production and Operations Management,28(8),2019,1903-1920.23 If a customer is willing to pay a lot for pro

48、duct A and not much for product B,bundling them together ensures that a retailer can get,at minimum,the margins they need for both product A and B.Before bundling,they might be losing money on product B,and the number of times product A or B was purchased was likely lower.Thus,bundling can increase

49、total purchase frequency and purchase amount.See Wu,Weijie,Richard T.B.Ma,and John C.S.Lui,“Exploring Bundling Sale Strategy in Online Service Markets with Network Effects,”IEEE Conference on Computer Communications,2014,442-450.24 ner,M.Mithat,Faruk Gven,S.Tamer Cavusgil,“Bundling of telecom offeri

50、ngs:An Empirical Investigation in the Turkish market,”Telecommunications Policy,39(1),2015,53-64;Wertz,Jia,“The Perks Of A Great Loyalty Program,”Forbes,September 26,2021,https:/ accessed June 8,2023);McMillen,Jenn,“Costco Next Is A Best-Kept Secret:Heres Why,”Forbes,April 20,2023,https:/ accessed J

51、uly 12,2023).Bundled Benefits of Retail Memberships in Mexico 7 B.Consumer Price Savings from Bundles The literature provides empirical estimates of price savings from bundled goods,which vary across industries and products:Estelami(1999)finds the average consumer savings in product bundles is 8%,wi

52、th the range varying from 57%at the highest to-18%at the lowest level(where negative estimated savings indicate the bundle is more expensive than the individual components purchased separately).25 The findings in the paper are based on gathering prices on 400 product bundles in fast food,computer eq

53、uipment,and photography equipment.Negative savings are more common in fast food bundles than in photo equipment or personal computer bundles.Evans and Salinger(2004)estimate 30%to 50%price savings from purchasing over-the-counter pain relief and cold medicines that combine multiple active ingredient

54、s,versus purchasing medicines for each active ingredient separately.26 Kim et al(2009)finds 10%average price savings for travel products purchased as a bundle from online travel agents,versus purchasing each product separately.27 Garfinkel et al.(2006)finds a median savings rate of 10%on bundles of

55、technology products such as cameras and printers relative to buying them individually.28 The literature contains few empirical studies of cost savings from bundled goods due to inherent challenges in measuring the standalone price of the component goods and features comprising a bundle.Estelami(1999

56、)describes many of these challenges,motivating the papers eventual selection of three industries for price study.In many industries such as medical care,price advertising is limited,which means that sufficient data on bundle prices and individual components is difficult to obtain.29 In 25 Estelami,H

57、ooman,“Consumer Savings in Complementary Product Bundles,”Journal of Marketing Summer 1999:107-114.The findings in the paper are based on gathering prices on 400 product bundles in fast food,computer equipment,and photography equipment.26 Evans,David S.and Michael Salinger,“An Empirical Analysis of

58、Bundling and Tying:Over-the-Counter Pain Relief and Cold Medicines,”Center for Economic Studies and ifo Institute,Working Paper No.1297,October 2004.27 Kim,Jinhoo,David C.Bojanic,and Rodney B.Warnick,“Price Bundling and Travel Product Pricing Practices Used by Online Channels of Distribution,”Journa

59、l of Travel Research,47(4),May 2009,403-412.The estimate of 10%is based on the finding reported on p.409:“The mean prices charged by online travel agents were lower than the prices charged by the individual service providers for the separate components of the bundle($1,269 and$1,417,respectively)”.1

60、0%=1-1269/1417.28 Garfinkel,Robert,Ram Gopal,Arvind Tripathi,and Fang Yin,Design of a shopbot and recommender system for bundle purchases,Decision Support Systems,42(3),2006,1974-1986.The estimate of 10%is based on the finding reported on pp.1981-1982:For each bundle we solved the problem using both

61、 CPLEX and our algorithm and compared the resulting savings using the sum of the individually-cheapest prices of items in the bundle as a benchmark.The median savings rate was 10%,and in nearly 10%of the cases the percentage savings were over 20%.”29 Rao,Preethi,Shira H.Fischer,Mary E.Vaiana,and Eri

62、n Audrey Taylor,“Barriers to Price and Quality Transparency in Health Care Markets,”RAND Health Quarterly,9(3),June 2022,1.Bundled Benefits of Retail Memberships in Mexico 8 other industries,goods are effectively sold as bundles of varying attributes and features which are not sold individually.For

63、example,automobiles are typically sold in a range of trim packages,but the vehicle features and components are not sold individually and thus the retail price of each individual feature is never defined in isolation from the total vehicle package.C.Consumer Perception of Bundles Rosa Abrantes-Metz,M

64、ame Maloney,and Jeff Brazell study consumer perceptions of bundled benefits of retail memberships in the paper“Bundled Benefits of Retail Memberships”(“US Bundling Study”).30 The US Bundling Study finds consumers value the additional features in bundled memberships,but that consumers preferences for

65、 specific bundled elements are heterogeneous.Other literature also shows that consumers generally perceive bundled goods and services positively,with bundles seen as cost-saving and value-adding.31 Bundles can reduce search cost and search effort for consumers,allowing them to find and enjoy product

66、s without needing to expend time and effort researching product options.32 Leveraging consumers positive perceptions can help sellers acquire and retain customers while also increasing consumer satisfaction.In particular,bundles and loyalty programs that offer price discounts help sellers attract co

67、nsumers into the program,while experiential discounts offered by bundled services prompt consumers to stay in the program.33 Consumer perceptions are also affected by how involved consumers are with sellers and with the loyalty programs.34 Importantly,the mere presence of bundles changes consumers e

68、valuation of the products or services in comparison to those same products individually.Consumers,especially first time users,are more 30 Rosa Abrantes-Metz,Mame Maloney,and Jeff Brazell,“Bundled Benefits of Retail Memberships,”December 2023,available at https:/ccianet.org/research/reports/bundled-b

69、enefits-retail-memberships/.An abridged version of this paper was published as“Unraveling The Bundled Benefits Of Retail Memberships,”Law360,January 29,2024.31 Heeler,Roger M.,Adam Nguyen,and Cheryl Buff,“Bundles=discount?Revisiting complex theories of bundle effects,”Journal of Product&Brand Manage

70、ment,16(7),November 6,2007,492500;Collins,Emily,and Anjali Lai,The Psychology Of Points,”Forrester,May 8,2018,https:/ accessed October 30,2023).32 Harris,Judy and Edward A.Blair,“Consumer Preference for Product Bundles:The Role of Reduced Search Costs,”Journal of the Academy of Marketing Science,34(

71、4),2006,506-513.33 Boudet,Julien,Jess Huang,and Ryter von Difloe,“Coping with the big switch:How paid loyalty programs can help bring consumers back to your brand(Exhibit 3),”McKinsey&Co,October 22,2020,https:/ accessed October 30,2023).34 Jeon,Hoseong and Youjae Yi,“Effects of Loyalty Programs on V

72、alue Perception,Program Loyalty,and Brand Loyalty,”Journal of the Academy of Marketing Science,31(3),June 2003,pp.229-240.Bundled Benefits of Retail Memberships in Mexico 9 likely to see an all-inclusive price package as providing more value.35 Not only that,goods that are made part of a bundle are

73、perceived as one unit,with consumers being more dissatisfied with the loss of a good or service from a bundle than the loss of that singular good/service in isolation,36 and as such,are willing to pay more for the restoration of the complete bundle.Consumers who participate in bundled services,espec

74、ially those who already hold a favorable attitude towards loyalty programs,are also likely to enjoy a feeling of higher status and increased belonging due to potential perceived exclusivity of the membership(for products such as elite credit cards,etc.),37 thus increasing consumer satisfaction overa

75、ll.38 How bundles are presented will also have a large impact on consumer perception.Displaying the price of individual components of a bundle may increase perceptions of fairness and value,especially when it is clear how the sum of component prices differs from the total package price.39 In additio

76、n,although consumers will infer cost savings and form a favorable impression of a bundle in the absence of other information,if they discover that the bundle is actually undiscounted,they will switch to a negative reaction to the bundle.40 When introducing a new product or brand,bundling allows sell

77、ers to take advantage of effects associated with existing products or brands and use them in marketing the new good or service.Consumers are more likely to view a new product positively if it is associated with an existing product they already feel positively about.41 This effect also applies to bra

78、nds.Attitudes towards the existing brands product or service in the bundle can influence the perception of the bundle that contains the new product,the product sold individually,and the brand that produces the new product.42 Finally,35 Naylor,Gillian and Kimberly E.Frank,“The Effect of Price Bundlin

79、g on Consumer Perceptions of Value,”Journal of Services Marketing,15(4),2001,270-281.36 Fishbach,Ayelet and Franklin Shaddy,“Seller Beware:How Bundling Affects Valuation,”American Marketing Association,54(5),2017,737-751.37 Arbore,Alessandro and Zachary Estes,“Loyalty program structure and consumers

80、 perceptions of status:Feeling special in a grocery store?,”Journal of Retailing and Consumer Services,20(5),2013,439444.38 Sderlund,Magnus,“Can the label member in a loyalty program context boost customer satisfaction?,”The International Review Of Retail,Distribution And Consumer Research,29(3),201

81、9,340357.39 Tanford,Sarah,Mehmet Erdem,and Seyhmus Baloglu,“Price Transparency Of Bundled Vacation Packages,”Journal of Hospitality&Tourism Research,35(2),May 2011,213-234.40 Nguyen,Adam,Roger M.Heeler,and Cheryl Buff,“Consumer perceptions of bundles,”Journal of Product&Brand Management,18(3),2009,2

82、18225.41 Simonin,Bernard L.,and Julie A.Ruth,“Bundling as a Strategy for New Product Introduction:Effects on Consumers Reservation Prices for the Bundle,the New Product,and Its Tie-In,”Journal of Business Research,33(3),1995,219-230.42 Sheng,Shibin and Yue Pan,“Bundling as a new product introduction

83、 strategy:The role of brand image and bundle features,”Journal of Retailing and Consumer Services,16(5),2009,367-376.Bundled Benefits of Retail Memberships in Mexico 10 consumers will also be more likely to accept a new innovation or unfamiliar technology if it is presented in a bundle with a comple

84、mentary good.43 Bundling Strategies Used by Retailers _ A variety of bundling strategies is employed by retailers.We start by providing a market-wide summary,and we supplement our discussion with featured examples of bundles offered by retailers,illustrating the various attributes of bundles with re

85、al-world examples.Market-wide Summary Figure 1 below provides an overview of the Mexican retail market,focusing on the top 20 Mexican retailers by revenue in 2022.44 Five of these 20 companies offer paid membership programs.Paid retail memberships are less common than in the US market,in which nearl

86、y half of the top 20 retailers offer paid memberships.45 In Mexico,the prices of top retailers paid memberships range from MXN$499 to over$1500 annually,substantially lower than the prices of retail memberships in the US.46 For example,the Walmart Pass membership in Mexico costs MXN$499/yr,compared

87、to the cost of a Walmart+membership in the US of MXN$1,632/yr.A portion of this nominal price difference is explained by cost of living differences between the two countries.The cost of consumer packaged goods in Mexico is estimated to be 23%lower than in the US.47 The remainder of the price differe

88、nce is due to the narrower range of benefits currently included in retail memberships in Mexico,discussed in more detail below.43 Reinders,Machiel,Ruud T.Frambach,and Jan P.L.Schoormans,“Using Product Bundling to Facilitate the Adoption Process of Radical Innovations,”Journal of Product Innovation a

89、nd Management,27(7),2010,1127-1140.44 https:/500empresas.expansion.mx/table,last accessed March 2024.Retail companies were selected by restricting to companies with“Sector”containing the word“comercio.”45 See US Bundling Study,documenting 8 of the top 20 retailers offer paid memberships.Since the pu

90、blication of the US Bundling Study,Target(the 7th largest US retailer in 2022)launched a paid membership program(“Get Ready:Target Circle is Getting Even Better with Three New and Easy Ways to Shop and Save,”Target press release,March 5,2024,available at https:/ accessed March 2024).46 See US Bundli

91、ng Study,Figure 1.47 David Argente,Chang-Tai Hsieh,and Munseob Lee,2023,Measuring the Cost of Living in Mexico and the United States,American Economic Journal:Macroeconomics,15(3):43-63.Bundled Benefits of Retail Memberships in Mexico 11 FIGURE 1:TOP 20 MEXICAN RETAILERS AND PAID MEMBERSHIP PROGRAMS

92、 Sources:Top 20 retailers and annual sales from https:/500empresas.expansion.mx/table;membership information from individual company websites.#Company2022 Mexican Retail Sales(MXN$Millions)Paid Membership Programs and Annual Fee1Walmart de Mxico$819,169Walmart Pass:$499 MXN/yr2Grupo Comercial Chedra

93、ui$259,326n/a3Grupo Coppel$247,532n/a4FEMSA Comercio(Oxxo)$233,958n/a5El Puerto de Liverpool$176,034n/a6Organizacin Soriana$166,013n/a7Sams Club$161,678Membresa Clsica:$500 MXN/yrMembresa Benefits:$650 MXN/yrMembresa Plus:$1,100 MXN/yr8Corporativo Fragua$97,918n/a9FEMSA Divisin Salud$74,800n/a10Tien

94、das Elektra$70,400n/a11Costco de Mxico$70,000Dorada:$500 MXN/yr Negocio:$500 MXN/yrDorada Ejecutiva:$1,100 MXN/yrNegocio Ejecutiva:$1,100 MXN/yr12Grupo Sanborns$64,807n/a13H-E-B Mxico$58,500H-E-B Prime:$499 MXN/yr14Farmacias del Ahorro$55,000n/a15Casa Ley$52,000n/a16Grupo Inditex Mxico$49,800n/a17Gr

95、upo Palacio de Hierro$45,632n/a18The Home Depot Mxico$42,210n/a19Mercado Libre de Mxico$37,466Meli+:$129.90 MXN/mnth20La Comer$33,436n/a Bundled Benefits of Retail Memberships in Mexico 12 The paid memberships listed in Figure 1 above were introduced at different times.The traditionally members-only

96、 stores entered the market in the early 1990s.While the other retailers entered the Mexican market in the late 1990s but did not introduce paid subscriptions until post-COVID.Sams Club and Costcoboth traditionally members-only warehouse storesentered the Mexican market in the early 1990s.48 Walmart

97、entered the Mexican market in 2000.49 The Walmart Pass membership rolled out nationwide in Mexico in 2021,soon after the introduction of the Walmart+in the US.50 H-E-B entered the Mexican market in 1997.51 The H-E-B Prime membership was introduced in July 2021.52 Mercado Libre,a digitally-native ret

98、ailer,was founded in 1999.53 The Meli+membership launched in August 2023.54 48 The first Sams Club in Mexico opened in 1991(https:/ accessed April 2024).In 1992,Mexican retailer Price Club was founded;in 1993,Price Club merged with Costco to form PriceCostco(Fernanda Pintle,“As se vea Costco cuando

99、abri su primera tienda en 1983 en un hangar de San Diego,”Business Insider Mexico,June 23,2022,available at https:/businessinsider.mx/costco-primera-tienda-mexico-price-club-historia_negocios/(last accessed April 15,2024).49 https:/ accessed April 13,2024).50 Sarah Perez,“Walmart+launches Sept 15,of

100、fering same-day delivery,gas discounts and cashierless checkout for$98/yr,”TechCrunch,August 31,2020,https:/ accessed September 23,2023).51 Karen Raugust,“Exploring H-E-B:Making Inroads in Mexico,”Produce Bluebook,April 21,2021,available at https:/ accessed April 13,2024).52 H-E-B 2021 Informe Anual

101、,p.17,available at https:/ accessed April 15,2024);H-E-B Mxico Facebook Post“nete a H-E-B Prime,”July 12,2021,available at https:/ accessed April 15,2024).53 William Barnett,Gary Mekikian,Christy Johnson,“The Rise of Mercado Libre,”Stanford Business Case Studies,2020,available at https:/www.gsb.stan

102、ford.edu/faculty-research/case-studies/rise-mercado-libre(last accessed April 13,2024).54 Christopher Caldern,“Meli+:Mercado Libre le hace la competencia a Amazon con su nuevo servicio de suscripcin,”El Financiero,August 30,2023,available at https:/.mx/empresas/2023/08/30/merli-mercado-libre-le-hace

103、-la-competencia-a-amazon-su-nuevo-servicio-de-suscripcion/,last accessed April 15,2024.Bundled Benefits of Retail Memberships in Mexico 13 Common Membership Features Figure 2 below summarizes the range of bundled benefits included in retail memberships in Mexico.All of the members include exclusive

104、or discounted fulfillment options,such as free shipping with order minimums.Only one membership offers streaming media subscriptions:Meli+(Mercado Libres paid membership program)offers subscriptions to Disney+and Star+streaming services.55 Brands also operating in the US offer different membership f

105、eatures in each country.For example,the Walmart+membership in the US includes streaming subscriptions to Paramount+and Pluto TV;in contrast,the Walmart Pass membership in Mexico does not include streaming.Three retailers offer health and wellness benefits,such as discounted prescriptions,free vision

106、 or hearing screenings,and access to the stores optical center which provides discounted eyeglasses.As seen in the US market,each membership offers a heterogeneous selection of benefits,offering some of these benefits but not others.FIGURE 2:SUMMARY OF BUNDLED BENEFITS OFFERED BY RETAILERS WITH PAID

107、 MEMBERSHIP PROGRAMS Source:individual company websites.55 Meli+,Mercado Libre,available at https:/.mx/suscripciones/melimas#origin=banner_menu_web&DEAL_ID=&S=MKT&V=1&T=BM&L=BM_loyalty_MELI+&me.bu=9&me.audience=all&me.content_id=BM_LOYALTY_MELIMAS_NOUSUARIOS_NEWCOLOR&ponent_id=banner_menu_web_ml&me.

108、logic=user_journey&me.position=0&me.bu_line=36&me.flow=146,last accessed March 5,2024.Features Available Exclusively(or at a Discount)to MembersNumber of Brands Offering FeatureWalmart de Mxico Sams ClubCostco de MxicoH-E-B MxicoMercado LibreFulfillment Options5XXXXXBundled Benefits via Partner Bran

109、ds2XXMedia Subscriptions1XHealth and Wellness Benefits3XXXStore Brand Products3XXXMonthly Store Credit2XX Bundled Benefits of Retail Memberships in Mexico 14 Examples Seen in the Market In addition to being employed by retailers,bundling strategies are seen across customer-facing industries in Mexic

110、o,including media,telecommunications,banking and travel.Mercado Libre provides the largest online commerce platform in Latin America.Mercado Libres online-only presence and emphasis on financial software sets it apart from other leading retailers in the Mexican market.56 Mercado Libres MXN$129.90 MX

111、N monthly membership,Meli+,includes free shipping with order minimum of MXN$299,and streaming subscriptions at Disney+and Star+.57 The inclusion of benefits from partner brands is an opportunity for both Mercado Libre and the partner brand to provide products to consumers that may not be purchased o

112、n a standalone basis,in a cost-effective manner.In the wireless sector,AT&T Mexico allows members to subscribe to a number of partner platforms,including Netflix and Spotify,with an AT&T number.58 Telcel,a Mexican wireless communications provider,offers a loyalty program,CrculoAzul Telcel,that costs

113、 MXN$5.04 for a year-long membership.Among other features,members enjoy health care,auto and travel benefits.59 Citibanamex,Mexicos second largest bank,also extends unique bundled benefits as part of their credit card packages.For example,Citibanamexs platinum credit card accumulates 10%in reward po

114、ints for every purchase made using the card.60 Rewards points can be used on entertainment events,retailer purchases,travel,and dining.Unlike bundle benefits observed in the American market for 56 Russell Brandom,“Why Amazon Isnt the Amazon of Latin America,”Rest of World,August 31,2023,available at

115、 https:/restofworld.org/2023/exporter-amazon-mercadolibre/,last accessed April 13,2024.57 Meli+,Mercado Libre,available at https:/.mx/suscripciones/melimas#origin=banner_menu_web&DEAL_ID=&S=MKT&V=1&T=BM&L=BM_loyalty_MELI+&me.bu=9&me.audience=all&me.content_id=BM_LOYALTY_MELIMAS_NOUSUARIOS_NEWCOLOR&p

116、onent_id=banner_menu_web_ml&me.logic=user_journey&me.position=0&me.bu_line=36&me.flow=146,last accessed March 5,2024.58 https:/.mx/acerca-de-entretenimiento.html 59 Beneficios y Promociones CrculoAzul,Telcel,available at https:/ accessed April 15,2024 60 Tarjeta de Crdito Platinum Citibanamex,Citiba

117、namex,available at https:/ accessed April 15,2024 Bundled Benefits of Retail Memberships in Mexico 15 banks addition,Citibanamex also offers different types of insurance benefits including homeowner and life insurance.61 Reforma,a major Mexican newspaper,provides discounts on entertainment events an

118、d other rewards along with subscription.62 Rewards include receiving newspaper before 7:30 am,access to exclusive events and sites,and discounts.Consumer Survey _ To provide an in-depth evaluation of the features included in retail memberships,we conducted a survey of 1,001 customers,using a variety

119、 of survey techniques to evaluate consumers attitudes towards,expected utilization of,and willingness to pay for specific attributes of memberships.Our survey covers four paid memberships offered by some of the largest Mexican retailers:Walmart Pass,Sams Club,Costco,and H-E-B Prime.In order to ensur

120、e respondents were familiar with big-box stores,we restricted to respondents who would consider shopping at a big-box store,and who had the decision-making power over their households retail membership purchase decision.63 In the survey,we focused on the following attributes found in one or more big

121、-box memberships:Membership price per year;Free shipping with order minimum;Monthly store credit to spend in the store;61 Promociones y Descuentos Citibanamex,Citibanamex,available at https:/ accessed April 15,2024.62 https:/ 63 Respondents were not allowed to complete the survey if they reported th

122、at they“rarely or never”shopped at big-box stores and“likely would not”or“definitely would not”consider shopping at a big-box store.Respondents were only allowed to complete the survey if they had significant influence over their households decision to purchase a big-box membership(eliminating respo

123、ndents with slight or no influence).Responses were further screened if respondents quit the survey partway through,or if they completed the survey so rapidly that it was unlikely they read the survey questions.After these screening steps,there were 1,001 completions of the survey.Bundled Benefits of

124、 Retail Memberships in Mexico 16 Video streaming services(Netflix,Disney+,and Star+);Health and wellness benefits such as savings on prescriptions,free eye exams,and access to store vision center with discounted eyeglasses;Availability of store credit card with cashback rewards at the store;Store di

125、stance from home;Buy online pickup in store(BOPIS)or curbside;and Access to store brand products not available to non-members.A.Membership and Multi-homing The majority of respondents(85%)had a paid membership at one or more of the big-box stores in our survey(the remaining 15%did not have membershi

126、ps at any of these four stores).64 Figure 3 below lists the number of respondents,out of the total sample of 1,001,who are members of each of the four stores.In addition,the figure summarizes the propensity of respondents to“multi-home”or subscribe to more than one retail membership.We find that it

127、is common for members of any one big-box store to purchase a membership at an additional store,with an average of 81%of members of big-box stores included in our survey choosing to be members at more than one big-box store.Figure 3 provides additional detail on the rate of multi-homing between each

128、pair of stores.For example,among Walmart Pass subscribers in the survey,76%also subscribe to Sams Club,and 69%also subscribe to Costco.The lowest amount of overlap is seen with H-E-B Prime,likely due to the regional nature of the H-E-B chain.65 64 See Appendix Figure 3 for counts of respondents by n

129、umber of memberships purchased at the big-box stores in our survey.65 H-E-B has 84 store locations in Mexico(including Mi Tienda and eFC locations),concentrated in the northeast.See https:/.mx/,last accessed April 13,2024.Bundled Benefits of Retail Memberships in Mexico 17 FIGURE 3:RESPONDENTS MEMBE

130、RSHIP IN BIG-BOX STORES Source:Consumer survey.Additional Retail Memberships Although not a primary focus of our survey,we additionally asked respondents whether they currently owned memberships at Amazon Prime,Meli+,Rappi Delivery,and UberPass.Considering these additional brands alongside the four

131、big-box stores,we find that the vast majority of respondents(92%)had at least one paid membership among the full set of brands considered.Furthermore,the majority of respondents multi-home.Of the respondents with paid memberships,78%have two or more such memberships,57%have three or more memberships

132、,and 22%have five or more memberships.Figure 4 below summarizes membership rates among respondents.FIGURE 4:RESPONDENTS NUMBER OF PAID RETAIL AND DELIVERY MEMBERSHIPS Source:Consumer survey.Although Amazon is not among the top retailers in Mexico based on dollar sales,the subscription was popular am

133、ong respondents,with 67%of respondents reporting Amazon Prime memberships.Of the Amazon Prime members in the survey,the vast majority multi-homed:93%had at least one other paid membership with another retailer.Figure 5 below provides a detailed breakdown of the membership overlap between the big-box

134、 store,Amazon Prime,and Meli+.Also Members of:Membership#MembersWalmart PassSams ClubCostcoH-E-B PrimeWalmart Pass33629488%76%69%33%Sams Club67748772%38%61%19%Costco53645885%43%77%23%H-E-B Prime16315595%69%80%75%Average:81%#Members with more than one membership%Members with more than one membership8

135、%14%21%20%14%9%6%4%4%0%5%10%15%20%25%012345678Number of Paid Memberships(Retail and Delivery Services)Percentage of Respondents Bundled Benefits of Retail Memberships in Mexico 18 FIGURE 5:OVERLAP BETWEEN MEMBERSHIP IN BIG-BOX STORES,AMAZON PRIME,AND MELI+Source:Consumer survey.Free Loyalty Programs

136、 We additionally investigated respondents participation in the following free loyalty programs:MiChedraui,Spin Premia,Soriana Plus or Soriana Ya,Puntos Sanborns,El Club de Beneficios,Privilegia Ley,and Monedero Naranja.We found multihoming less common than for paid retail or delivery memberships.Wit

137、h paid memberships,owning 2 or 3 memberships is more common than owning only one;this is not true among free loyalty programs,where it is most common to belong to only a single such program.We still find,however,that the majority of respondents are willing to participate in multiple loyalty programs

138、.FIGURE 6:RESPONDENTS NUMBER OF FREE LOYALTY PROGRAMS Source:Consumer survey.Income Breakdown of Members The US Bundling Study documented a difference in income distributions between members of each of the four big-box stores studied.In particular,Costco members were significantly more likely than n

139、on-members to be in the highest income bracket,where as Sams Club members were significantly less likely than non-members to be in the highest income bracket.In the US market,this is consistent with the idea of certain brands having a premium or prestige status,and other brands being seen as Also Me

140、mbers of:Membership#MembersWalmart PassSams ClubCostcoH-E-B PrimeMeli+AmazonWalmart Pass33632697%76%69%33%35%82%Sams Club67761090%38%61%19%25%73%Costco53650995%43%77%23%26%76%H-E-B Prime16316199%69%80%75%54%75%Meli+20319898%57%84%68%43%80%Amazon66762193%41%74%61%18%24%Average:94%#Members with more t

141、han one membership%Members with more than one membership18%29%20%17%8%8%0%10%20%30%012345+Number of Free Loyalty ProgramsPercentage of Respondents Bundled Benefits of Retail Memberships in Mexico 19 discount options,and such brands would potentially draw customers from different segments of the mark

142、et.In Mexico,the income distribution of members is similar across all four brands studied.Figure 7 below shows the distribution of incomes for members of each big-box store.Members of any of the four stores are more likely to be in higher income brackets,and less likely to be in lower income bracket

143、s.Brand-specific breakdowns are provided in Appendix Figure 4 through Appendix Figure 7,comparing the income distribution of members versus non-members.The similarity of the income distributions among members of the four big-box stores suggests that each of these stores is competing for a similar se

144、gment of the market,rather than specializing in catering to specific market segments.As we discuss further in the next section,while brand has an important effect on consumers decision making,the presence of other features also has a strong ability to sway the purchase decision(see Figure 8).Togethe

145、r,these findings suggest that product differentiation via the inclusion of additional bundled membership elements may be particularly important in the Mexican market.FIGURE 7:DISTRIBUTION BY INCOME OF MEMBERS IN BIG-BOX STORES Source:consumer survey.B.Importance of Product Features to Customers Purc

146、hase Decisions To assess how consumers make tradeoffs between products,we employed a conjoint choice task survey methodology.In the conjoint choice task,respondents were asked to select among four hypothetical big-box membership subscriptions,based on randomized values of price,brand,bundled benefit

147、s included with the membership,and other membership features.Appendix Figure 1 lists the product attributes and possible levels tested in the survey.Appendix Figure 2 provides an example of a conjoint choice task presented to respondents.0%10%20%30%40%50%$244kMXNWalmart Pass MembersSams Club Members

148、Costco MembersH-E-B Prime Members Bundled Benefits of Retail Memberships in Mexico 20 The conjoint methodology allows us to observe which product features are most likely to drive a customers choice between products,referred to as the“relative importance.”Figure 8 below shows the relative importance

149、 of each of the attributes studied in the survey.The percentage values can be interpreted relative to each other(for example,an attribute with“relative importance”of 20%is twice as important as an attribute with“relative importance”of 10%).As can be seen in the figure,the most important elements dri

150、ving customers decisions are the brand of the store and the membership price per year.This suggests that offering competitive pricing is very important for retail subscription memberships.FIGURE 8:RELATIVE IMPORTANCE OF MEMBERSHIP ATTRIBUTES Source:Consumer survey.C.Consumers Willingness to Pay for

151、Membership Attributes In addition to assessing the relative importance to the consumers purchasing decision,the conjoint survey methodology allows us to assess the dollar value consumers place on each product feature,referred to as the“willingness to pay”(“WTP”).The WTP is measured by assessing the

152、tradeoffs customers made between different hypothetical product bundles,given the different price points presented.Figure 9 below presents the WTP for each of the membership attributes studied,showing the value consumers are willing to pay for each level of that attribute,in MXN per year.The WTP amo

153、unts for each attribute are measured relative to the implicit MXN$0 consumers would pay when the attribute AttributeRelative ImportancePrice per year25%Brand17%Free shipping with order minimum14%Monthly store credit12%Streaming service9%Health and wellness benefits7%Store credit card6%Distance from

154、home4%BOPIS/Curbside3%Access to store brand products3%PriceBrandFree ShippingStore creditStreamingHealthCredit CardDistanceBOPISStore brand products Bundled Benefits of Retail Memberships in Mexico 21 is not offered at all.66 For example,we find that the WTP for a Netflix subscription is MXN$224.Thi

155、s means that consumers would be willing to pay an extra MXN$224 per year for a retail membership,all else equal,if it includes a Netflix subscription.FIGURE 9:WILLINGNESS TO PAY FOR MEMBERSHIP ATTRIBUTES(ALL AMOUNTS IN$MXN)Source:Consumer survey.Below,we discuss some of the key takeaways from the WT

156、P assessment,tying these findings into the larger discussions of customer welfare.Price Discrimination and Synergies We find that consumers WTP for streaming services is far less than the standalone price of these subscriptions.For example,consumers in the survey would be willing to pay an additiona

157、l MXN$224 per year for a membership that included a Netflix streaming subscription.Purchased separately,a Standard Netflix subscription would cost MXN$2,628 per year.67 66 For the“store distance from home”attributes,the WTP amounts are measured relative to a store located more than 20 kilometers fro

158、m home,which is normalized to MXN$0.67 https:/ accessed April 15,2024.The“Standard with ads”plan costs$99 MXN/month;the“Standard”plan costs$219 MXN/month,and the Premium plan costs$299 MXN/month.$28$57$33$19$134$107$87$78$224$148$116$136$282$262$117Access to store brand productsBOPISStore less than

159、10 kilometers from homeStore 10 to 20 kilometers from homeStore credit card with cashback on store purchasesAccess to store optical center with discounted eyeglassesFree vision and hearing examsPharmacy discountsStreaming:NetflixStreaming:Disney+Streaming:Star+Monthly store credit of$100 MXNFree shi

160、pping for orders of$299 MXN+Free shipping for orders of$399 MXN+Free shipping for orders of$999 MXN+Bundled Benefits of Retail Memberships in Mexico 22 Based on the difference between the WTP and the full price of a standalone membership,we can infer bundling may allow companies to reach customers w

161、ho may not have otherwise purchased the product because the standalone price was too high.This is an example of“price discrimination,”in which a seller charges different prices to different customers for the same product.68 This structure benefits sellers by allowing them to capture additional custo

162、mers(reducing so-called“deadweight loss”).This structure can also benefit customers if they are able to access the good for a lower price than they would have been able to pay on a standalone basis(increasing so-called“consumer surplus”).Specifically,selling a bundle of goods for less than the sum c

163、ost of the individual goods comprising the bundle is a type of second-degree price discrimination.69 This strategy may reduce the sellers per-unit costs,since the marginal marketing costs are minimized when the product is bundled,as the bundle benefits from each component products marketing efforts.

164、70 Second-degree price discrimination also gives sellers a cost-effective method to implement market segmentation:separating customers into groups that can be targeted with different strategies(in this case,the market is segmented by whether the customer is willing to purchase the standalone goods o

165、r requires price savings from the bundle).71 Consumer Surplus Consumer surplus quantifies the net benefit that consumers receive when they purchase a good or service at a price lower than what they would be willing to pay.In other words,consumer surplus corresponds to the extra satisfaction consumer

166、s derive from a purchase.Following the approach in the paper“Economic Valuation of Product Features”by Allenby,Brazell,Howell,and Rossi,we compute consumer surplus based on the conjoint survey responses.72 For this calculation,we define a“feature rich”state of the world containing the four big-box s

167、tores covered by our survey with the actual prices charged and attributes included with each membership.We contrast this against a“feature poor”state of the world,which we configure as missing one of the competitors.In other words,we measure the consumer surplus for Costco by asking the question,“If

168、 Costco closed,but you could still have a membership with Walmart Pass,Sams Club,or BJs,what surplus have you lost?”68 Mankiw,Gregory,Principles of Economics:8th Edition,(Boston:Cengage Learning,2016),303.69 Black,John,Nigar Hasimzade,and Gareth Myles,“Second-Degree Price Discrimination,”in A Dictio

169、nary of Economics 3rd Edition,(Oxford:Oxford University Press,2009).70 Yan,Ruiliang,Chris Myers,John Wang,and Sanjoy Ghose,“Bundling products to success:The influence of complementarity and advertising,”Journal of Retailing and Consumer Services,21(1),2014,4853.71 McDonald,Malcolm,Martin Christopher

170、,and Margrit Bass,“Market segmentation,”Marketing,4165,2003,46.72 Allenby,Greg M.,Jeff D.Brazell,John R.Howell,and Peter E.Rossi,“Economic Valuation of Product Features,”Quantitative Marketing and Economics,12(4),2014,421456.Bundled Benefits of Retail Memberships in Mexico 23 Figure 10 below provide

171、s estimates of consumer surplus for members of each club store(as the concept of consumer surplus is based on people who purchased a product).We then scale the per-member surplus by the total number of members for each club store,to provide the total market-wide consumer surplus.Taken together,the t

172、otal market-wide consumer surplus for all four retail memberships is approximately MX$1.4 billion.FIGURE 10:ESTIMATED CONSUMER SURPLUS Notes and sources:-Per-member consumer surplus estimated using consumer survey.-Costco Mexican membership estimated as the number of global members,multiplied by the

173、 percentage of Costcos global locations located in Mexico.In 2022,Costco had 65.8 million members worldwide(Costco 2023 Form 10-K,p.5).In 2022,it had 838 locations globally,40 of which are in Mexico(Costco 2023 Form 10-K,p.41).-The remaining brands do not publish estimates of their membership(neithe

174、r worldwide nor for Mexico specifically).We estimate the total number of Mexican members based on proportions observed in consumer survey responses,scaled by estimated number of Mexican Costco members.D.Consumer Preferences To assess consumer reactions to features of retail memberships,we employed a

175、 Kano survey technique,named after Noriaki Kano,who pioneered this framework in 1984.73 Using the Kano survey technique,we asked respondents how they would feel if a given option was a feature of a retail membership subscription.Consumers could respond that they would be delighted,they would expect

176、the feature,they would not care,they would tolerate the feature,or they would not be happy with this feature.We posed the Kano assessment separately for each of the big-box stores,since consumers evaluate each feature within the context of what they know about the brand.73 Kano,Noriaki,Nobuhiko Sera

177、ku,Fumio Takahashi,and Shin-ichi Tsuji,“Attractive Quality and Must-Be Quality,”Journal of the Japanese Society for Quality Control,41(2),1984,pp.39-48.MembershipPer-Member Consumer Surplus(MXN)Number of MembersTotal Consumer Surplus(MXN)Walmart Pass$4002 M$788 MSams Club$534 M$211 MCostco$1073 M$33

178、7 MH-E-B Prime$541 M$52 MTotal10 M$1.4 B Bundled Benefits of Retail Memberships in Mexico 24 Consumer Reactions to Membership Attributes Below,Figure 11 through Figure 14 present the distribution of consumer reactions to each membership feature,for each of the four big-box stores,as evaluated by mem

179、bers of that store.Across all four big-box stores,the following patterns emerge:Among all four brands,very few respondents reacted negatively to membership attributes(as seen from the rightmost two columns in the figures below,indicating“I would tolerate it”or“I would not be happy”responses).Among a

180、ll the product features examined,free shipping and monthly store credit received the highest level of delight from customers.Netflix received a more positive reaction than Disney+and Star+,receiving a higher proportion of“I would be delighted”responses.Out of all attributes,Disney+and Star+received

181、the highest proportion of“I do not care”responses.Walmart Pass,Costco,and Sams Club members expressed proportionally similar levels of delight and expectation with regards to the additional membership features.H-E-B Prime members were more likely to rate features“as expected,”despite the absence of

182、many of these features from the H-E-B Prime membership.We observe heterogeneity among individual consumer reactions to each of the membership attributes,as seen by the variety of consumers delighted,expecting,or indifferent to each attribute(as seen in the leftmost three columns in the figures below

183、).FIGURE 11:CONSUMER REACTIONS TOWARDS ATTRIBUTES OF WALMART PASS MEMBERSHIP Source:consumer survey.WALMART PASS MEMBERS:How Would You Feel if This Option Was Included With a Walmart Pass Membership?I would be delightedI would expect itI would not careI would tolerate itI would not be happyFree ship

184、ping with order minimum64%32%3%1%0%Monthly store credit64%31%4%1%0%Netflix61%29%10%0%0%Disney+54%32%13%1%1%Star+52%32%13%1%1%Health and wellness benefits61%33%5%0%0%Store credit card with cashback on store purchases64%29%7%0%0%Buy online pickup in store or curbside57%37%5%0%1%Access to store brand p

185、roducts56%36%7%1%0%Bundled Benefits of Retail Memberships in Mexico 25 FIGURE 12:CONSUMER REACTIONS TOWARDS ATTRIBUTES OF SAMS CLUB MEMBERSHIP Source:Consumer survey.FIGURE 13:CONSUMER REACTIONS TOWARDS ATTRIBUTES OF COSTCO MEMBERSHIP Source:Consumer survey.SAMS CLUB MEMBERS:How Would You Feel if Th

186、is Option Was Included With a Sams Club Membership?I would be delightedI would expect itI would not careI would tolerate itI would not be happyFree shipping with order minimum69%28%3%1%0%Monthly store credit71%25%4%0%0%Netlix66%24%9%1%0%Disney+57%26%15%2%0%Star+52%27%18%2%1%Health and wellness benef

187、its66%28%5%1%0%Store credit card with cashback on store purchases65%28%6%1%0%Buy online pickup in store or curbside57%35%7%1%1%Access to store brand products57%37%5%1%0%COSTCO MEMBERS:How Would You Feel if This Option Was Included With a Costco Membership?I would be delightedI would expect itI would

188、 not careI would tolerate itI would not be happyFree shipping with order minimum69%25%6%0%0%Monthly store credit67%29%3%1%0%Netflix66%25%9%1%0%Disney+54%30%15%1%0%Star+50%30%19%1%1%Health and wellness benefits62%32%5%1%0%Store credit card with cashback on store purchases60%32%7%1%0%Buy online pickup

189、 in store or curbside51%37%11%0%0%Access to store brand products54%39%5%1%0%Bundled Benefits of Retail Memberships in Mexico 26 FIGURE 14:CONSUMER REACTIONS TOWARDS ATTRIBUTES OF H-E-B PRIME MEMBERSHIP Source:Consumer survey.Both Members and Non-Members Would be Delighted by the Inclusion of New Bun

190、dled Benefits In the US Bundling Study,members of each retail subscription were more likely to express delight at the memberships feature,even after controlling for respondent income and the total number of big-box retail memberships the respondent owns.This result suggests that people who have chos

191、en to pay for a membership are more pleased with the features than people who have not purchased it.Moreover,in the US Bundling Study,this effect was similar across all memberships studied.A different pattern emerges in the Mexican market,potentially due to the developing nature of the omnichannel r

192、etail market in Mexico.With the exception of Sams Club,we no longer observe members significantly more likely to be delighted than non-members;instead,we see roughly equal levels of delight among members and non-members,suggesting that potential buyers would be highly receptive to the introduction o

193、f additional features into memberships.We discuss each brand in turn.Figure 15 below presents the likelihood that Walmart Pass members will respond to membership attributes with delight,relative to non-members.The chart can be read as follows:a value of 1,indicated with a black line,means that membe

194、rs and non-members are equally likely to respond with delight.Values above 1 indicate that members are more likely to be delighted:for example,a value of 2 would mean members are twice as likely as non-members to be delighted.In the chart,features actually included in a Walmart Pass membership are c

195、olored in dark blue,and other features are colored in light blue.For two of the membership attributes actually included in Walmart Pass memberships(free shipping with order minimum,and health and wellness benefits),Walmart Pass members are statistically significantly more likely to be delighted that

196、 non-members,H-E-B PRIME MEMBERS:How Would You Feel if This Option Was Included With a H-E-B Prime Membership?I would be delightedI would expect itI would not careI would tolerate itI would not be happyFree shipping with order minimum50%45%2%2%0%Monthly store credit52%39%9%1%0%Netflix49%44%6%2%0%Dis

197、ney+43%48%9%1%0%Star+46%47%6%1%1%Health and wellness benefits56%37%6%1%0%Store credit card with cashback on store purchases52%43%4%1%0%Buy online pickup in store or curbside52%41%6%0%1%Access to store brand products55%38%7%1%0%Bundled Benefits of Retail Memberships in Mexico 27 even after controllin

198、g for income and the total number of memberships owned by the respondent.74 For the other membership attributes,Walmart Pass members and non-members are statistically equally likely to be delighted.FIGURE 15:RELATIVE LIKELIHOOD THAT WALMART PASS MEMBERS WILL RESPOND WITH DELIGHT AS COMPARED TO NON-M

199、EMBERS Source:Consumer survey.Next to each bar,stars indicate that members have a statistically significantly different probability of responding with delight,as compared to non-members,based on a logistic regression also controlling for income and number of big-box memberships owned:*,*,and*indicat

200、e statistical significance at the 99%,95%,and 90%levels,respectively.74 Based on a logistic regression controlling for income and number of big-box memberships owned.*-1 2 3Free shipping with order minimumMonthly store creditNetflixDisney+Star+Health and wellness benefitsStore credit cardBuy online

201、pickup in store or curbsideAccess to store brand productsRelative likelihood of members versus nonmembers to express delight Features Included in Walmart Pass Membership Features Not Included in Walmart Pass Membership Bundled Benefits of Retail Memberships in Mexico 28 Figure 16 below provides resu

202、lts for Costco.For all attributes,regardless of whether they are included in a Costco membership,Costco members and non-members are equally likely to be delighted by the feature.FIGURE 16:RELATIVE LIKELIHOOD THAT COSTCO MEMBERS WILL RESPOND WITH DELIGHT AS COMPARED TO NON-MEMBERS Source:Consumer sur

203、vey.Next to each bar,stars indicate that members have a statistically significantly different probability of responding with delight,as compared to non-members,based on a logistic regression also controlling for income and number of big-box memberships owned:*,*,and*indicate statistical significance

204、 at the 99%,95%,and 90%levels,respectively.-1 2 3Free shipping with order minimumMonthly store creditNetflixDisney+Star+Health and wellness benefitsStore credit cardBuy online pickup in store or curbsideAccess to store brand productsRelative likelihood of members versus nonmembers to express delight

205、 Features Included in Costco Membership Features Not Included in Costco Membership Bundled Benefits of Retail Memberships in Mexico 29 Figure 17 provides a breakdown for H-E-B Prime members.For most membership attributes,H-E-B Prime members are equally likely to be delighted than non-members.The exc

206、eptions are two of the streaming featuresDisney+and Star+for which H-E-B Prime members are statistically significantly less likely to be delighted than non-members.This suggests that current H-E-B non-members may be induced to purchase a membership if these kinds of streaming features were introduce

207、d,whereas current H-E-B members are happy with the existing set of features.FIGURE 17:RELATIVE LIKELIHOOD THAT H-E-B PRIME MEMBERS WILL RESPOND WITH DELIGHT AS COMPARED TO NON-MEMBERS Source:Consumer survey.Next to each bar,stars indicate that members have a statistically significantly different pro

208、bability of responding with delight,as compared to non-members,based on a logistic regression also controlling for income and number of big-box memberships owned:*,*,and*indicate statistical significance at the 99%,95%,and 90%levels,respectively.*-1 2 3Free shipping with order minimumMonthly store c

209、reditNetflixDisney+Star+Health and wellness benefitsStore credit cardBuy online pickup in store or curbsideAccess to store brand productsRelative likelihood of members versus nonmembers to express delight Features Included in H-E-B Prime Membership Features Not Included in H-E-B Prime Membership Bun

210、dled Benefits of Retail Memberships in Mexico 30 Finally,Figure 18 displays the results for Sams Club members.This brand stands out among the four memberships studied;for every membership attribute,Sams Club members are statistically significantly more likely to be delighted than non-members.This ap

211、plies to both features that re included in the membership and features that are not.This suggests that Sams club members not only enjoy the current attributes,but would be strongly receptive to the inclusion of additional features into their subscriptions.FIGURE 18:RELATIVE LIKELIHOOD THAT SAMS CLUB

212、 MEMBERS WILL RESPOND WITH DELIGHT AS COMPARED TO NON-MEMBERS Source:Consumer survey.Next to each bar,stars indicate that members have a statistically significantly different probability of responding with delight,as compared to non-members,based on a logistic regression also controlling for income

213、and number of big-box memberships owned:*,*,and*indicate statistical significance at the 99%,95%,and 90%levels,respectively.Each Customer Values Different Features We find that customers value different attributes that could be included with each membership.In other words,the positive results in our

214、 survey are not dominated by a set of“always-delighted”respondents who react with delight to every single possible feature.Instead,each customer reacts with delight to the particular features that add most value to them,and this set varies by individual customer.Customers heterogeneous preferences a

215、llow retailers to add bundled benefits to members in a cost-effective way.By including a wide variety of features that may not be used by every member,retailers are able to make features available at a low cost to all members.Figure 19 below illustrates customer preferences across pairs of features.

216、Each box in the table indicates the degree to which customer reactions to Feature A is related to Feature B.The higher the number in the table,the higher the correspondence.A value of 1 means that for every single respondent,how they feel about Feature A would also predict exactly how they would fee

217、l about*-1 2 3Free shipping with order minimumMonthly store creditNetflixDisney+Star+Health and wellness benefitsStore credit cardBuy online pickup in store or curbsideAccess to store brand productsRelative likelihood of members versus nonmembers to express delightFeatures Includedin MembershipFeatu

218、res Not Included in Membership Bundled Benefits of Retail Memberships in Mexico 31 Feature B:the customer would love both,or be indifferent to both.A value of 0 would mean there is no relationship between respondents feelings about the two features.The following patterns are evident:The highest degr

219、ee of overlap is seen among the streaming services:for example,the same customers who would be delighted by a Disney+subscription would also be delighted by a Star+subscription(correlation of 78%,shaded in green in the table).The lowest degree of overlap is seen between the streaming subscriptions v

220、ersus other membership features.In other words,respondents reactions to streaming subscriptions is not predictive of their reactions to the other membership features.Although Netflix subscription and availability of store credit card have similar overall proportions of customers who would be delight

221、ed by these features,they are largely not the same customers(only 32%correlation).The fulfillment options(free shipping and BOPIS)see only a moderate degree of overlap,indicating that different fulfillment methods will not always appeal to the same groups of customers.None of the membership features

222、 gets the same reactions from customers as any other feature.This suggests that inclusion of additional features in memberships is a way for brands to differentiate their product offerings and appeal to different groups of customers.FIGURE 19:CORRELATION OF CUSTOMER REACTIONS TO MEMBERSHIP ATTRIBUTE

223、S Source:consumer survey.Free shipping with order minimumMonthly store creditNetflixDisney+Star+Health and wellnessStore credit cardBOPIS/CurbsideAccess to store brand productsFree shipping with order minimum64%42%37%30%56%47%52%57%Monthly store credit64%39%36%33%64%60%54%67%Netflix42%39%68%57%41%32

224、%37%38%Disney+37%36%68%78%40%35%35%37%Star+30%33%57%78%35%34%37%38%Health and wellness56%64%41%40%35%52%48%58%Store credit card47%60%32%35%34%52%48%59%BOPIS/Curbside52%54%37%35%37%48%48%69%Access to store brand products57%67%38%37%38%58%59%69%Bundled Benefits of Retail Memberships in Mexico 32 E.Fre

225、quency of Use We asked respondents how frequently they would use each membership attribute,as well as how frequently they would shop at a big-box store.Figure 20 below summarizes frequency of use among all respondents.For interpreting this table,we remind readers that the survey was conducted specif

226、ically among customers who would be willing to shop at big-box stores.75 We also note that the different membership attributes cannot always be compared directly,due to natural differences in terms of how frequently most people would tend to use them.For example,people may watch streaming TV multipl

227、e times per week,whereas health and wellness benefits such as eyeglasses are needed less frequently.Compared to US consumers,Mexican consumers express high expectations of using all of the benefits of their membership.The exception is Disney+and Star+services,which had the least expected usage.FIGUR

228、E 20:FREQUENCY OF USE OF MEMBERSHIP ATTRIBUTES Source:consumer survey.Frequency of Use and Consumer Preferences We next summarize respondents by their reactions to each membership attribute,as well as their anticipated use of that feature,in Figure 21 through Figure 29 below.76 Each graph is organiz

229、ed as a 75 In order to ensure familiarity with the products and attributes,the survey was restricted to respondents who would consider shopping at a big-box store.Specifically,among respondents who reported they would use big-box stores rarely or never,we eliminated respondents who likely or definit

230、ely would not consider shopping at a big-box store.76 These figures average the Kano responses across all four big-box stores.ALL RESPONDENTS:How Often Would You Use This Attribute of a Big-Box Retail Membership?WeeklyEvery 2 to 3 weeksMonthlyEvery few monthsRarely or neverFree shipping29%37%18%10%4

231、%2%Monthly store credit23%35%16%21%3%2%Netflix58%21%6%8%2%5%Disney+48%23%9%8%4%9%Star+43%21%11%8%5%12%Health and wellness benefits19%25%21%20%11%4%Store credit card with cashback on store 25%35%19%13%4%4%Buy online pickup in store or curbside19%34%23%12%6%5%Access to store brand products24%44%19%9%2

232、%2%Multiple times per week Bundled Benefits of Retail Memberships in Mexico 33 grid:moving left to right shows the range of customer reactions,from delight to dislike.77 Moving top to bottom shows the range of expected use,from most to least frequent.In general,we find that the more positively an in

233、dividual responds to a subscription characteristic,the more they expect to use it.Individuals who respond with indifference to a feature tend to anticipate using it rarely or never,and vice versa.However,when interpreting consumers anticipated utilization of products,we note that the literature has

234、documented the consumers propensity to overestimate their use of a product.78 Therefore it may be the case that when consumers are delighted by an attribute,they will over-estimate the amount they will actually use it,leading to a higher concentration towards the upper-left corner of the grid.FIGURE

235、 21:CONSUMER PREFERENCES AND ANTICIPATED FREQUENCY OF USE Source:Consumer survey.77 For simplicity,we consolidate the two negative responses“I would tolerate it”and“I would not be happy”due to low numbers of respondents selecting these options.78 See,e.g.,Grubb,Michael D.,“Overconfident Consumers in

236、 the Marketplace,”Journal of Economic Perspectives,29(4),Fall 2015,9-36.FREE SHIPPING WITH ORDER MINIMUMExpected Use Frequency:I would be delightedI would expect itI would not careI would tolerate it or not be happyMultiple times per week22%6%1%0%Weekly24%11%2%0%Every 2 to 3 weeks12%5%1%0%Monthly6%3

237、%1%0%Every few months2%1%0%0%Rarely or never1%0%0%0%Bundled Benefits of Retail Memberships in Mexico 34 FIGURE 22:CONSUMER PREFERENCES AND ANTICIPATED FREQUENCY OF USE Source:Consumer survey.FIGURE 23:CONSUMER PREFERENCES AND ANTICIPATED FREQUENCY OF USE Source:Consumer survey.MONTHLY STORE CREDITEx

238、pected Use Frequency:I would be delightedI would expect itI would not careI would tolerate it or not be happyMultiple times per week17%5%0%0%Weekly22%11%1%0%Every 2 to 3 weeks9%6%1%0%Monthly14%5%1%0%Every few months1%1%0%0%Rarely or never1%0%1%0%NETFLIXExpected Use Frequency:I would be delightedI wo

239、uld expect itI would not careI would tolerate it or not be happyMultiple times per week43%10%4%0%Weekly11%8%2%0%Every 2 to 3 weeks2%3%1%0%Monthly4%1%2%0%Every few months0%1%1%0%Rarely or never1%0%4%0%Bundled Benefits of Retail Memberships in Mexico 35 FIGURE 24:CONSUMER PREFERENCES AND ANTICIPATED F

240、REQUENCY OF USE Source:Consumer survey.FIGURE 25:CONSUMER PREFERENCES AND ANTICIPATED FREQUENCY OF USE Source:Consumer survey.DISNEY+Expected Use Frequency:I would be delightedI would expect itI would not careI would tolerate it or not be happyMultiple times per week36%8%3%0%Weekly10%10%3%0%Every 2

241、to 3 weeks3%4%2%0%Monthly2%2%3%0%Every few months1%1%1%0%Rarely or never1%1%6%1%STAR+Expected Use Frequency:I would be delightedI would expect itI would not careI would tolerate it or not be happyMultiple times per week32%8%3%0%Weekly9%9%2%0%Every 2 to 3 weeks3%5%3%0%Monthly2%2%4%0%Every few months1

242、%2%2%0%Rarely or never1%1%8%1%Bundled Benefits of Retail Memberships in Mexico 36 FIGURE 26:CONSUMER PREFERENCES AND ANTICIPATED FREQUENCY OF USE Source:Consumer survey.FIGURE 27:CONSUMER PREFERENCES AND ANTICIPATED FREQUENCY OF USE Source:Consumer survey.HEALTH AND WELLNESSExpected Use Frequency:I

243、would be delightedI would expect itI would not careI would tolerate it or not be happyMultiple times per week13%5%1%0%Weekly15%9%1%0%Every 2 to 3 weeks13%7%1%0%Monthly13%6%1%0%Every few months6%3%2%0%Rarely or never2%0%1%0%STORE CREDIT CARD WITH CASHBACK SAVINGSExpected Use Frequency:I would be deli

244、ghtedI would expect itI would not careI would tolerate it or not be happyMultiple times per week19%5%1%0%Weekly21%12%2%0%Every 2 to 3 weeks9%8%2%0%Monthly8%4%1%0%Every few months2%1%1%0%Rarely or never1%1%2%0%Bundled Benefits of Retail Memberships in Mexico 37 FIGURE 28:CONSUMER PREFERENCES AND ANTI

245、CIPATED FREQUENCY OF USE Source:Consumer survey.FIGURE 29:CONSUMER PREFERENCES AND ANTICIPATED FREQUENCY OF USE Source:Consumer survey.BUY ONLINE PICKUP IN STORE OR CURBSIDEExpected Use Frequency:I would be delightedI would expect itI would not careI would tolerate it or not be happyMultiple times p

246、er week13%5%1%0%Weekly19%13%2%0%Every 2 to 3 weeks11%10%2%0%Monthly5%5%2%0%Every few months2%3%1%0%Rarely or never1%2%3%0%ACCESS TO STORE BRAND PRODUCTSExpected Use Frequency:I would be delightedI would expect itI would not careI would tolerate it or not be happyMultiple times per week17%6%1%0%Weekl

247、y22%19%2%0%Every 2 to 3 weeks8%9%1%0%Monthly4%4%2%0%Every few months1%1%1%0%Rarely or never0%0%1%0%Bundled Benefits of Retail Memberships in Mexico 38 Conclusion _ We have documented a variety of bundling strategies employed by retailers as well as service providers in other sectors such as mobile c

248、ommunications,media,credit cards,and others.As we have shown,bundled benefits are a common strategy applied by many brands,with different brands exhibiting heterogeneous levels of bundled offerings.Based on our survey assessing consumer reactions to bundled elements,we find the following:Customers t

249、ypically enjoy the inclusion of additional features in retail memberships,although customer reactions are not uniform.We observe very few respondents reacting negatively to the inclusion of features in membership bundles.Both members and nonmembers respond with delight at the inclusion of potential

250、additional membership features,suggesting the Mexican market is receptive to the expansion of feature-rich customer benefit programs.Customers often subscribe to multiple memberships.This reinforces the conclusion that in general,consumers do not feel constrained by provider choice limitations.If pr

251、ovided with a bundle component from a non-preferred brand,consumers feel free to also patronize their preferred brand.Membership featuresas well as pricesdrive consumers purchase decisions.Price plays the most important role in respondents purchase decisions,suggesting the necessity for retailers to

252、 price their memberships competitively.Other membership featuressuch as video streaming,free shipping,or store credit cardall have roughly similar ability to sway consumers purchase decisions between retail memberships.Market-wide consumer surplus for all four retail memberships is approximately MXN

253、$1.4 billion.Bundled Benefits of Retail Memberships in Mexico 39:Survey Methodology APPENDIX FIGURE 1:MEMBERSHIP ATTRIBUTES STUDIED IN SURVEY AttributeLevelsBrand Walmart Mexico Sams Club Mexico Costco Mexico H-E-B MexicoPrice per year MXN$500 to$1550.Order minimum ranging from$299 MXN+to$999 MXN+No

254、t available(-)$100 MXN to$600 MXN Not available(-)Streaming service Netflix Disney+Star+Not available(-)free vision and hearing exams access to store optical center with discounted eyeglasses pharmacy discounts Not available(-)Store credit card 3%cashback on store purchases Not available(-)Less than

255、 10 kilometers 10 to 20 kilometers Over 20 kilometers Available()Not available(-)Available()Not available(-)Free shipping with order minimumMonthly store creditHealth and Wellness BenefitsBuy online pickup in store or curbsideStore distance from homeAccess to store brand products Bundled Benefits of

256、 Retail Memberships in Mexico 40 APPENDIX FIGURE 2:EXAMPLE OF CONJOINT CHOICE TASK :Additional Survey Results Number of Big-Box Memberships Purchased APPENDIX FIGURE 3:RESPONDENTS NUMBER OF MEMBERSHIPS OWNED AT BIG-BOX STORES IN SURVEY Source:Consumer survey.Number of Big-Box MembershipsNumber of Re

257、spondentsPercentage of Respondents014715%131832%230230%314615%4889%Bundled Benefits of Retail Memberships in Mexico 41 Breakdown of Respondents by Income Members of paid retail memberships more likely to have higher income than non-members.Appendix Figure 4 through Appendix Figure 7 below show the i

258、ncome distribution of members versus nonmembers,for each membership separately.APPENDIX FIGURE 4:DISTRIBUTION OF INCOME,WALMART PASS MEMBERS VERSUS NONMEMBERS Source:Consumer survey.Above each bar,stars indicate that the proportion of store members in this income bracket is statistically significant

259、ly different than non-members,based on chi-square tests:*,*,and*indicate statistical significance at the 99%,95%,and 90%levels,respectively.APPENDIX FIGURE 5:DISTRIBUTION OF INCOME,SAMS CLUB MEMBERS VERSUS NONMEMBERS Source:Consumer survey.Above each bar,stars indicate that the proportion of store m

260、embers in this income bracket is statistically significantly different than non-members,based on chi-square tests:*,*,and*indicate statistical significance at the 99%,95%,and 90%levels,respectively.*0%10%20%30%40%50%$244kMXNWalmart Pass Members:percentage of respondents in each income groupWalmart P

261、ass Non-members:percentage of respondents in each income group*0%10%20%30%40%50%$244kMXNSams Club Members:percentage of respondents in each income groupSams Club Non-members:percentage of respondents in each income group Bundled Benefits of Retail Memberships in Mexico 42 APPENDIX FIGURE 6 DISTRIBUT

262、ION OF INCOME,COSTCO MEMBERS VERSUS NONMEMBERS Source:Consumer survey.Above each bar,stars indicate that the proportion of store members in this income bracket is statistically significantly different than non-members,based on chi-square tests:*,*,and*indicate statistical significance at the 99%,95%

263、,and 90%levels,respectively.APPENDIX FIGURE 7:DISTRIBUTION OF INCOME,H-E-B PRIME MEMBERS VERSUS NONMEMBERS Source:Consumer survey.Above each bar,stars indicate that the proportion of store members in this income bracket is statistically significantly different than non-members,based on chi-square te

264、sts:*,*,and*indicate statistical significance at the 99%,95%,and 90%levels,respectively.Appendix Figure 8 below breaks down the number of big-box memberships purchased by respondents within each income bracket.Respondents with household income less than$39k MXN are the least likely to purchase a big

265、-box membership.79 Of the respondents with four memberships,these respondents were most likely to fall in the highest income bracket(over$244k MXN)are the most likely to purchase four subscriptions.80 79 The difference in likelihood is statistically significant at the 99%level.80 The difference in l

266、ikelihood is statistically significant at the 99%level.*0%10%20%30%40%50%$244kMXNCostco Members:percentage of respondents in each income groupCostco Non-members:percentage of respondents in each income group*0%10%20%30%40%50%$244kMXNH-E-B Prime Members:percentage of respondents in each income groupH

267、-E-B Prime Non-members:percentage of respondents in each income group Bundled Benefits of Retail Memberships in Mexico 43 APPENDIX FIGURE 8:NUMBER OF MEMBERSHIPS PURCHASED BY RESPONDENTS,BY INCOME Source:Consumer survey.Additional Kano Results APPENDIX FIGURE 9:ALL CONSUMER REACTIONS TOWARDS ATTRIBU

268、TES OF WALMART PASS MEMBERSHIP Source:Consumer survey.0%20%40%60%01234244k MXNPercentage of Respondents(Within Each Income Bracket)Number of Big-Box Store MembershipsALL RESPONDENTS:How Would You Feel if This Option Was Included With a Walmart Pass Membership?I would be delightedI would expect itI w

269、ould not careI would tolerate itI would not be happyFree shipping63%31%5%1%0%Monthly store credit63%30%6%1%0%Netflix58%26%15%1%0%Disney+51%26%19%3%1%Star+47%26%23%3%1%Health and wellness benefits59%32%8%1%0%Store credit card with cashback on store purchases60%31%8%1%0%Buy online pickup in store or c

270、urbside51%38%10%1%1%Access to store brand products52%39%8%1%0%Bundled Benefits of Retail Memberships in Mexico 44 APPENDIX FIGURE 10:NON-MEMBERS REACTIONS TOWARDS ATTRIBUTES OF WALMART PASS MEMBERSHIP Source:consumer survey APPENDIX FIGURE 11:ALL CONSUMER REACTIONS TOWARDS ATTRIBUTES OF SAMS CLUB ME

271、MBERSHIP Source:consumer survey APPENDIX FIGURE 12:NON-MEMBERS REACTIONS TOWARDS ATTRIBUTES OF SAMS CLUB MEMBERSHIP Source:consumer survey NOT A MEMBER OF ANY BIG-BOX STORE:How Would You Feel if This Option Was Included With a Walmart Pass Membership?I would be delightedI would expect itI would not

272、careI would tolerate itI would not be happyFree shipping59%31%10%1%0%Monthly store credit57%33%8%2%0%Netflix52%24%22%1%1%Disney+40%26%26%5%3%Star+33%21%37%7%3%Health and wellness benefits63%24%11%2%0%Store credit card with cashback on store purchases55%31%11%2%1%Buy online pickup in store or curbsid

273、e37%41%19%1%1%Access to store brand products44%43%12%1%0%ALL RESPONDENTS:How Would You Feel if This Option Was Included With a Sams Club Membership?I would be delightedI would expect itI would not careI would tolerate itI would not be happyFree shipping67%29%4%1%0%Monthly store credit67%27%5%1%0%Net

274、lix62%22%13%1%0%Disney+53%24%19%2%1%Star+48%27%22%3%1%Health and wellness benefits64%28%6%1%0%Store credit card with cashback on store purchases60%30%8%1%0%Buy online pickup in store or curbside51%38%9%1%1%Access to store brand products53%39%6%1%0%NOT A MEMBER OF ANY BIG-BOX STORE:How Would You Feel

275、 if This Option Was Included With a Sams Club Membership?I would be delightedI would expect itI would not careI would tolerate itI would not be happyFree shipping63%29%6%1%1%Monthly store credit59%33%7%1%1%Netlix54%18%24%1%1%Disney+44%18%31%5%2%Star+37%18%36%7%3%Health and wellness benefits62%24%11%

276、3%1%Store credit card with cashback on store purchases52%31%13%2%1%Buy online pickup in store or curbside37%43%16%2%2%Access to store brand products48%39%10%1%1%Bundled Benefits of Retail Memberships in Mexico 45 APPENDIX FIGURE 13:ALL CONSUMER REACTIONS TOWARDS ATTRIBUTES OF COSTCO MEMBERSHIP Sourc

277、e:consumer survey APPENDIX FIGURE 14:NON-MEMBERS REACTIONS TOWARDS ATTRIBUTES OF COSTCO MEMBERSHIP Source:consumer survey APPENDIX FIGURE 15:ALL CONSUMER REACTIONS TOWARDS ATTRIBUTES OF H-E-B PRIME MEMBERSHIP Source:consumer survey ALL RESPONDENTS:How Would You Feel if This Option Was Included With

278、a Costco Membership?I would be delightedI would expect itI would not careI would tolerate itI would not be happyFree shipping70%24%5%1%0%Monthly store credit66%28%4%1%0%Netflix65%22%11%1%0%Disney+54%27%16%2%1%Star+48%28%21%2%1%Health and wellness benefits62%31%6%1%0%Store credit card with cashback o

279、n store purchases59%31%8%1%1%Buy online pickup in store or curbside49%38%12%1%1%Access to store brand products53%40%6%1%0%NOT A MEMBER OF ANY BIG-BOX STORE:How Would You Feel if This Option Was Included With a Costco Membership?I would be delightedI would expect itI would not careI would tolerate it

280、I would not be happyFree shipping67%24%5%1%1%Monthly store credit59%32%7%1%1%Netflix61%16%20%1%1%Disney+45%24%23%5%3%Star+37%19%35%4%5%Health and wellness benefits59%29%10%1%1%Store credit card with cashback on store purchases53%28%14%2%3%Buy online pickup in store or curbside35%38%22%3%2%Access to

281、store brand products41%47%9%2%1%ALL RESPONDENTS:How Would You Feel if This Option Was Included With a H-E-B Prime Membership?I would be delightedI would expect itI would not careI would tolerate itI would not be happyFree shipping54%33%12%1%0%Monthly store credit53%33%13%1%0%Netflix51%27%19%2%1%Disn

282、ey+44%29%24%2%1%Star+39%30%26%3%1%Health and wellness benefits53%30%15%1%0%Store credit card with cashback on store purchases48%34%15%2%1%Buy online pickup in store or curbside42%38%18%1%1%Access to store brand products44%39%15%1%0%Bundled Benefits of Retail Memberships in Mexico 46 APPENDIX FIGURE

283、16:NON-MEMBERS REACTIONS TOWARDS ATTRIBUTES OF H-E-B PRIME MEMBERSHIP Source:consumer survey NOT A MEMBER OF ANY BIG-BOX STORE:How Would You Feel if This Option Was Included With a H-E-B Prime Membership?I would be delightedI would expect itI would not careI would tolerate itI would not be happyFree

284、 shipping50%30%18%1%1%Monthly store credit50%33%15%2%0%Netflix45%23%29%2%1%Disney+37%22%35%5%1%Star+27%26%38%7%2%Health and wellness benefits52%27%20%1%1%Store credit card with cashback on store purchases46%31%20%2%1%Buy online pickup in store or curbside33%37%29%1%1%Access to store brand products36%43%19%1%1%