Conventional wisdom, marketing literature, and cross-selling practices to date are based on the notion that customer cross-buying is positively associated with customer profitability. However, this study finds that when certain customers with persistent adverse behavioral traits (e.g., limited spending, excessive revenue reversals, excessive service requests, promotion purchase behavior) engage in cross-buying, they exhibit a downward spiral of unprofitable relationship, with the losses increasing with higher levels of cross-buy. The authors analyze the customer databases of five firms and find that 10%-35% of the firms' customers who cross-buy are unprofitable and account for a significant proportion (39%-88%) of the firms' total loss from its customers. Consequently, the authors present a two-stage framework to enable managers to discern customers who are likely to engage in profitable versus unprofitable cross-buying. Overall, the findings refine the basic understanding of the cross-buy phenomenon and motivate managers to rethink their marketing practices and policies, which are typically designed to maximize cross-buy opportunities for every customer.
This paper investigates important relationships between college football performance and athletic department football revenues. The research draws from secondary data sources examining coaching experience, head coach salary, and recruiting performance as key antecedents to winning, and ultimately football revenues. The study also highlights the overriding influence of winning tradition on each stage of the proposed model. Further, the paper addresses the proposed performance-revenue model for both power 5 and non-power 5 football schools. The findings are different and revealing, and will help researchers and sport marketing professionals better understand the different football identities for these two football school categories. Ultimately, this paper highlights the importance of winning on athletic department football revenue generation for collegiate institutions across the country.
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