Unprofitable cross buying

SHAH, DENISH

Unprofitable cross buying Evidence from consumer and business markets - 2012 - 78-95

Conventional wisdom, marketing literature, and cross selling practices to date are based on the notion that customer cross buying is positively associated with customer pofitability. However this study finds that when certain customers with persistent adverse behavioral traits( e.g. limited spending, excessive revenue reversals, excessive service requests, promotion purchase behavior) engage in cross buying, they exhibit a downward spiral of unprofitable relationship, with the losses increasing with higher levels of cross buying.

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