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Investigating cross-buying and customer loyalty

Author

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  • Reinartz, Werner
  • Thomas, Jacquelyn S.
  • Bascoul, Ganaël

Abstract

Cross-buying (i.e., the purchase of products from multiple categories) has been associated with higher levels of customer retention, revenue generation, and loyalty. Despite these claims, debate remains as to whether cross-buying is an antecedent to such behaviors or if loyalty behaviors represent the antecedent, with cross-buying as a consequence. This research investigates the direction, strength, and nature of the relationship between customers’ cross-buying behavior and associated behavioral outcomes by using a Granger-type causality modeling and two data sets. The authors determine that cross-buying is a consequence and not an antecedent of behavioral loyalty. Specifically, behavioral loyalty drives both the number of categories from which a person buys and the level of spending dispersion across those categories. These findings have significant implications for cross-selling strategies.

Suggested Citation

  • Reinartz, Werner & Thomas, Jacquelyn S. & Bascoul, Ganaël, 2008. "Investigating cross-buying and customer loyalty," Journal of Interactive Marketing, Elsevier, vol. 22(1), pages 5-20.
    • Handle: RePEc:eee:joinma:v:22:y:2008:i:1:p:5-20
    DOI: 10.1002/dir.20106
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    References listed on IDEAS

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    Cited by:

    1. Jihoon Cho & Swinder Janda, 2023. "Perception carryover in cross-buying: the role of interpurchase time and product locus," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(4), pages 809-819, December.
    2. Samy Mansouri, 2021. "Business cycles influences upon customer cross-buying behavior in the case of financial services," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(3), pages 181-201, September.
    3. Polo, Yolanda & Sese, F. Javier & Verhoef, Peter C., 2011. "The Effect of Pricing and Advertising on Customer Retention in a Liberalizing Market," Journal of Interactive Marketing, Elsevier, vol. 25(4), pages 201-214.
    4. Jean-Baptiste Débordès & Gilles Caporossi & Denis Larocque, 2021. "Is my cross-promotion profitable? Evaluation of game-to-game cannibalization in free-to-play mobile games," Journal of Marketing Analytics, Palgrave Macmillan, vol. 9(3), pages 173-184, September.
    5. Philippe Aurier & Victor D. Mejía, 2021. "The differing impacts of brand-line breadth and depth on customers’ repurchasing behavior of frequently purchased packaged goods," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1244-1266, November.
    6. Philipp Noormann & Sebastian Tillmanns, 2017. "Drivers of private-label purchase behavior across quality tiers and product categories," Journal of Business Economics, Springer, vol. 87(3), pages 359-395, April.
    7. Evanschitzky, Heiner & Malhotra, Neeru & Wangenheim, Florian v. & Lemon, Katherine N., 2017. "Antecedents of peripheral services cross-buying behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 36(C), pages 218-224.
    8. Ilona Skačkauskienė & Neringa Vilkaitė-Vaitonė & Sergej Vojtovic, 2015. "Model for measuring customer loyalty towards a service provider," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 16(6), pages 1185-1200, December.
    9. Seung Min Lee & Sang Yong Kim & Shijin Yoo & Tae Ho Song, 2021. "The cross-buying effect in a multi-vendor loyalty program in Korea," Asian Business & Management, Palgrave Macmillan, vol. 20(3), pages 339-369, July.
    10. Ravula, Prashanth & Bhatnagar, Amit & Ghose, Sanjoy, 2020. "Antecedents and consequences of cross-effects: An empirical analysis of omni-coupons," International Journal of Research in Marketing, Elsevier, vol. 37(2), pages 405-420.
    11. Carsten D. Schultz & Björn Gorlas, 2023. "Magic mirror on the wall: Cross-buying at the point of sale," Electronic Commerce Research, Springer, vol. 23(3), pages 1677-1700, September.
    12. Martinelli, Elisa & De Canio, Francesca, 2021. "Purchasing veg private labels? A comparison between occasional and regular buyers," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    13. Iacob Cătoiu & Daniel Adrian Gârdan & Iuliana Petronela Geangu, 2012. "Customer Loyalty - Specific Features Of Retail Activity In Bucharest," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(14), pages 1-25.
    14. Kim, Hyejeong & Niehm, Linda S., 2009. "The Impact of Website Quality on Information Quality, Value, and Loyalty Intentions in Apparel Retailing," Journal of Interactive Marketing, Elsevier, vol. 23(3), pages 221-233.
    15. Nita Umashankar & Yashoda Bhagwat & V. Kumar, 2017. "Do loyal customers really pay more for services?," Journal of the Academy of Marketing Science, Springer, vol. 45(6), pages 807-826, November.
    16. Blattberg, Robert C. & Malthouse, Edward C. & Neslin, Scott A., 2009. "Customer Lifetime Value: Empirical Generalizations and Some Conceptual Questions," Journal of Interactive Marketing, Elsevier, vol. 23(2), pages 157-168.

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