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The cross-buying effect in a multi-vendor loyalty program in Korea

Author

Listed:
  • Seung Min Lee

    (Institute for Business Research and Education, Korea University)

  • Sang Yong Kim

    (Korea University Business School)

  • Shijin Yoo

    (Korea University Business School)

  • Tae Ho Song

    (Pusan National University)

Abstract

This study investigates the factors weakening the relationship between a customer’s cross-buying and firm sales in a multi-vendor loyalty program (MVLP) in Korea. The findings indicate that cross-buying has a positive impact on purchase frequency, transaction size, and further cross-buying in the subsequent periods. However, this impact is attenuated when customers are inclined to deal proneness or spending limit. The findings give academics and managers the opportunity to reconsider the conventional assumptions about cross-buying. Instead of emphasizing cross-selling for random customers, firms must identify customers whose cross-buying behavior affects firm performance positively. This study has managerial implications for MVLP operators for the effective acquisition and retention of participating vendors.

Suggested Citation

  • 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.
    • Handle: RePEc:pal:abaman:v:20:y:2021:i:3:d:10.1057_s41291-019-00088-w
    DOI: 10.1057/s41291-019-00088-w
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