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Customer cross‐selling model based on counter propagation network

Chao‐hua Liu (School of Management, Huazhong University of Science and Technology, Wuhan, People's Republic of China)
Shu‐qin Cai (School of Management, Huazhong University of Science and Technology, Wuhan, People's Republic of China)

Direct Marketing: An International Journal

ISSN: 1750-5933

Article publication date: 28 March 2008

Abstract

Purpose

With increasing market competition, enterprises have come to realize that it is easier to maximize profit by cross‐selling services to existing customers than to attract new customers. It can often be observed that consumers sequentially purchase multiple products and services from the same provider. Accordingly, this commonly observed situation offers huge opportunities for companies carrying multiple products and services to “cross‐sell” other products and services to their existing customer group. The purpose of this paper is to find out a convenient way to identify the customers with cross‐selling potential.

Design/methodology/approach

In this paper, the authors investigate the customer demographic data, including age, income, gender and educational level, and study the relation between the variables and the customers' cross‐selling potential based on counter propagation network (CPN).

Findings

The authors set up a cross‐selling model successfully. After inputting age, gender, education level, and income into the input layer of the model, the model will show us which products the potential customers should buy in the output layer. This process can provide useful information for the enterprise to persuade the customers into buying the unpurchased products and provide the products to the right customer.

Originality/value

In this paper, the authors set up the cross‐selling model based on the CPN. The model can predict the customer cross‐selling potential successfully according to the customer demography data – age, income, gender, and educational level.

Keywords

Citation

Liu, C. and Cai, S. (2008), "Customer cross‐selling model based on counter propagation network", Direct Marketing: An International Journal, Vol. 2 No. 1, pp. 36-47. https://doi.org/10.1108/17505930810863626

Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited