In the last decade, marketers have primarily focused on keeping customers. Only recently have they become aware that creating value by cross-selling additional services is also an important aspect of customer relationship management. In this article we investigate how satisfaction and payment equity, defined as the perceived fairness of the price, affect cross-buying at a multiservice provider. We also consider its competitors’ performance on these factors. Our results show that the effect of satisfaction differs between customers with lengthy and short relationships. It also shows that payment equity negatively affects cross-buying for customers with long relationships. However, if the prices of the supplier are perceived as fairer than the prices of the competitor, the customers’ probability of cross-buying increases.

compeition, customer lifetime value, multiservice providers, purchase behavior, satisfaction
dx.doi.org/10.1016/S0022-4359(01)00052-5, hdl.handle.net/1765/2184
ERIM Top-Core Articles
Journal of Retailing
Erasmus Research Institute of Management

Franses, Ph.H.B.F, Verhoef, P.C, & Hoekstra, J.C. (2001). The impact of satisfaction on cross buying: A dynamic model for a multi-service provider. Journal of Retailing, 77(3), 359–378. doi:10.1016/S0022-4359(01)00052-5