2016-17

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    CROSS SELLING AND UPSELLING OF SERVICES WITH REFERENCE TO THOMAS COOK INDIA LTD
    (2017-08-14T10:13:09Z) ANASWARA, VARMA
    Cross-selling and up-selling are fundamental database marketing activities for developing customers; that is, increasing customer expenditures with the firm. Cross-selling entails selling products in the firm's product line that the customer does not currently own. Up- selling entails selling “more” (higher volume, upgrades) of products they already are buying from the company. Included are next-product-to-buy models, which predict which product the customer is likely to purchase next, and extensions using hazard models that predict when the customer will buy. Cross-selling pertains to efforts to increase the number of products or services that a customer uses within a firm. Cross-selling products and services to current customers has lower associated cost than acquiring new customers, because the firm already has some relationship with the customer. A proper implementation of cross-selling can only is achieved if there is an information infrastructure that allows managers to offer customers products and services that tap into their needs, but have not been sold to them yet. Furthermore, we conjecture that cross selling is effective for customer retention by increasing switching costs and enhancing customer loyalty, thus directly contributing to customer profitability and life time value. The more services a customer uses with the firm, the higher the costs of switching to other firms, which leads to loyalty and tenure .Up-selling “is what happens when you take the initiative to ask someone who already has purchased something you offer to purchase more of it - or more of something else”. Up-selling means moving "up" to a more expensive version of what they're already purchasing. ¸Cross-selling trials, based on estimated purchase probabilities, are not guaranteed to be successful and such missed attempts may disrupt customers. There is a general belief that cross-selling can be backward if not implemented cautiously, but there is no good understanding of the nature and impact of this negative response or adequate policy to balance it. This article focuses on this subject and develops a modelling framework that uses a Markov decision-making model to take into account negative customer responses to failed sales trials and the effect of past contacts in managing cross-selling initiatives.