Abstract/Details

Essays on cross selling, bundling, and customer retention


2006 2006

Other formats: Order a copy

Abstract (summary)

In today's business environment, customer retention is one of the cornerstones of a firm's effort to manage its customers. As one of several strategies to increase customer retention, firms may cross-sell other products to the customer, perhaps offering the products as a bundle. This thesis proposes three essays on the use of bundling and cross-selling by firms to retain customers. In Chapter 2 we analytically model the effect of strategic competition on bundling. In contrast to the previous literature, we find that concurrent bundling by competitors, if it occurs in equilibrium, is profitable and helps firm retain customers. Further, when one firm bundles and the other firm does not, the bundling firm gains a greater share of customers and makes a higher profit. Chapter 3 empirically investigates if "act of cross-buying" multiple products from the same service provider reduces customer churn. Using customer data from a vendor of wireless phone services, we find that cross-buying has a dual benefit in that it not only generates profit from additional products but also improves customer retention. Chapter 4 analytically investigates if bundling discounts reduces customer switching and increase profits. This essay considers competition between firms using price promotions. The main intuition of this chapter is that bundling increases profits through a reduction in switching.

Indexing (details)


Subject
Marketing
Classification
0338: Marketing
Identifier / keyword
Social sciences; Bundling; Cross-selling; Customer retention
Title
Essays on cross selling, bundling, and customer retention
Author
Ghosh, Bikram P.
Number of pages
133
Publication year
2006
Degree date
2006
School code
0183
Source
DAI-A 68/05, Dissertation Abstracts International
Place of publication
Ann Arbor
Country of publication
United States
ISBN
9780549047858
Advisor
Balachander, Subramanian
University/institution
Purdue University
University location
United States -- Indiana
Degree
Ph.D.
Source type
Dissertations & Theses
Language
English
Document type
Dissertation/Thesis
Dissertation/thesis number
3263574
ProQuest document ID
305264736
Copyright
Database copyright ProQuest LLC; ProQuest does not claim copyright in the individual underlying works.
Document URL
http://search.proquest.com/docview/305264736/abstract
Access the complete full text

You can get the full text of this document if it is part of your institution's ProQuest subscription.

Try one of the following:

  • Connect to ProQuest through your library network and search for the document from there.
  • Request the document from your library.
  • Go to the ProQuest login page and enter a ProQuest or My Research username / password.