Volume 20, Number 2 Article by Richa Sharma Vyas June, 2008
A Study of Customers’ Perception of Cross Selling: Using a Grounded Theory Approach :
Cross selling has been identified as an important source of expanding market share using the existing customer base. In recent years there has been a plethora of cross selling practices used by many companies across industries. Cross selling has become a primary instrument in a firm’s CRM policy. However, little effort is made on the part of firms to understand the customers’ perspective on their cross selling practices. In order to be more effective in terms of conversion ratio, cross selling practices need to incorporate the critical element of customer experience and responses to various methods. In this paper an attempt has been made to understand and document customers’ perceptions and experience of various cross selling efforts made by firms.
As the aim of the study was to get insights into customers’ perception of cross selling and the basis or source of such perceptions, and to develop an understanding of how firms can make use of such insights in their cross selling efforts, the interpretive paradigm was adopted. The study was conducted with 38 respondents from various courses at a well known business school. The author synthesises insights from consumer interviews and focus groups discussions with those available in the literature to draw inferences for implementation of successful cross selling strategies.
This study shows that customers, despite having heterogeneous views about cross selling, were in agreement on the benefits of cross selling, like convenience and economy of transactions and building relationships. However, the place and time of the cross selling offer being made, the channels used, the attractiveness of an offer, prior experience with the marketer, shared brand images of cross selling partners, personal attention and power equation with the marketer are primary constructs that affect consumers’ perception of cross selling and in turn the success of the efforts made by the firm.
Reprint No 08202
