The document outlines a research proposal to study the effects of cross-selling and corporate branding on customer loyalty through developing a theoretical model and collecting data using a questionnaire. It reviews literature on concepts like relationship marketing, loyalty, trust, satisfaction, commitment, and corporate image and proposes hypotheses about the relationships between these concepts. The goal is to understand how cross-selling and corporate branding can help diversification and competition across multiple markets.
2. Paradigm shift from transactional to relationship
marketing
The shift of focus from product branding to
corporate branding.
Multimarket Competition (Multipoint
Competition)
Cross-selling has received limited attention in the
academic literature. Most of the literature focuses
on methodology for identifying common
acquisition patterns of products bought by
customers based on their usage or ownership data
3. CONTRIBUTION TO KNOWLEDGE
This research will test:
The role cross-selling has in customer loyalty (attitudinal and
behavioural loyalty)
The role of corporate branding has in cross-selling and its
effect on loyalty (attitudinal and behavioral loyalty).
If the A Priori Model is confirmed the numerical justifications
will be supported because it will mean both corporate branding
and cross-selling play a major role in diversification and
multipoint competition.
4. Two philosophical perspectives that are mainly
focused on are Positivism and Phenomenology.
Realism is about the mechanisms of how the
world functions, while positivism is an
epistemology that prescribes the examination
of it. Scientific realists maintain that
unobservable constructs have existence;
additionally, it is these unobservable
mechanisms that frequently offer
rationalisation for observable phenomena.
5. As a result, for the realist researcher, constructs
such as culture, the organization, and corporate
planning exist and act quite independently of
the observer. The analysis of natural
phenomena is possible. Thus, understanding is
improved through induction wherein findings
increase the knowledge about the pertinent
phenomena. Therefore, recognised paradigms
are reflections of the world. The more the
paradigms match with the facts the more
reliable they are believed to be.
6. Structural Equation Modelling is in line with
the realism perspective. When complex
phenomena have been adequately identified to
permit generalisation to a population instead of
to a theory, then Structural Equation Modelling
can be used as a method. The reason for this is
that it models compositions with intricate co-
dependencies and it unambiguously permits
multi-item scales and constructs. It is for this
reason that Structural Equation Modelling is
the proposed method to be used in this
research.
7. RELATIONSHIP MARKETING
Sustaining long-lasting relationships with customers
Attracting new customers should not be the main concern
for most companies
The focus is on cultivating and retaining current customers
8. LOYALTY
IT IS PROPOSED THAT RETENTION RATE SHOWS THE LIKELIHOOD OF A
CUSTOMER REMAINING LOYAL TO A SUPPLIER.
Despite over three decades of research
The loyalty phenomenon has not been conceptually elucidated
9. LOYALTY
BEHAVIOURAL LOYALTY ATTITUDINAL LOYALTY
Recency Attitudes are quantified
Frequency through surveys where
customers declare their
Monetary Value
purchase goals.
Attitudinal loyalty can be
used as an antecedent of
behavioural loyalty
10. ATTITUDINAL AND BEHAVIOURAL LOYALTY
There is the need to study the relationship
between behaviour and attitude since the
discourse in the literature is mainly conceptual
11. COGNITIVE DISSONANCE THEORY
The evaluation process from pre-purchases to post purchases is
the main concern of much consumer research.
Cognitive Dissonance Theory indicates that customers look for
congruent relationships in attitudes and behaviours.
Inconsistency is supposed to create mental pressure.
Consequently customers discard selecting substitutes or
evidence that can be inconsistent with their present conviction.
H1 Behavioural loyalty has a positive effect on attitudinal loyalty
12. TRUST
TRUST IS NEEDED IN UNCERTAINTY
CUSTOMERS TRY TO DECREASE RISK AND AMBIGUITY WHEN BUYING
GOODS THROUGH MENTAL HEURISTICS
TRUST IS AN EFFICIENT HEURISTIC THAT CAN REDUCE
UNCERTAINTY
A STUDY FOUND A POSITIVE EFFECT ON TRUST ON CROSS-BUYING
INTENTIONS AND CROSS-BUYING
H2 TRUST HAS A POSITIVE EFFECT ON CROSS-BUYING
H3 TRUST HAS A POSITIVE EFFECT ON ATTITUDINAL LOYALTY
H4 TRUST HAS A POSITIVE EFFECT ON BEHAVIOURAL LOYALTY
13. SATISFATION COMMITMENT
Even though the literature acknowledged
Conventionally satisfied satisfaction’s importance the progression from a
customers were seen less satisfied customer to a relational partner is not
price sensitive and as fully comprehended.
those who buy additional
products and services. Concomitantly, a rational antecedent of loyalty is
commitment since it is the degree to which a
Positive effect of customer customer wishes to remain in a continuous
satisfaction on cross- relationship. Commitment can be divided into two
buying has been forms:
supported.
Calculative commitment: is the determination to
remain in the relationship considering switching
H6 Satisfaction has a costs and shortage in options. An example can be
positive effect on cross- customers being loyal to a company though he/she
as low satisfaction levels.
buying
H7 Calculative Commitment has a positive effect on
behavioural loyalty.
14. Affective commitment: is warmer because of mutuality or
connection customer has with a firm that result in stronger
degree if trust and devotion.
Therefore emotive commitment means stronger degree of trust
and devotion. Affective commitment is considered as a bond
that matures over time and through various involvements.
H8 Affective commitment has a positive affect on trust
H9 Affective commitment has a positive effect on attitudinal
loyalty.
Affective commitment instead of previous experiences with the
firm affects satisfaction.
H10 Affective commitment has a positive effect on satisfaction
15. CROSS-SELLING
Firms sell more than one product or service to increase the value of the
relationships. The more a customer bought from a company the more loyal that
customer is.
H11 Cross-selling has a positive effect on attitudinal loyalty
H12 Cross-selling has a positive effect on behavioural loyalty.
16. CORPORATE IMAGE
When it is about the corporate brand perceived
by customers is usually referred to as image. It is
about perceptions, beliefs and attitudes
customers have about a company.
17. THE SHIFT TO CORPORATE BRANDING
Products are swiftly imitated and standardised
These occurrences require the positioning of the entire
organisation , then, the corporate images stand out as the
main differentiation strategy.
H13 Customers will more likely to cross-buy unrelated
products if the corporate brand is strong
18. IMAGE AND PERSONALITY
Studies theorise image as the customer’s psychological
depiction of a company and emphasise it mainly as a
personal character. Given that customers’ perceptions of a
corporation’s image influence their loyalty, companies focus
more on the image than the tangible product.
Image is about positioning the selling proposition in the
minds of customers.
H14 A positive image strengthens attitudinal loyalty.
H15 A positive image strengthens behavioural loyalty
21. MULTIPOINT COMPETITION
The acknowledgement of involving multimarket contact with
diversification is relatively new. The two are theoretically always
together. Multi-market analysis installs a dynamic dimension.
22. MULTIPOINT COMPETITION
Usually companies in multimarket settings have complementary
productions or distributions. Operations characteristically exhibit
“product extensions” or “market extensions”. These fusions
through internal growth or mergers enable the firm to utilise its
marketing links. Diversified firms usually have products in the
same distribution outlets.