Exploiting the Installed Base Using Cross-Merchandising and Category Destination Programs

  title={Exploiting the Installed Base Using Cross-Merchandising and Category Destination Programs},
  author={Xavier Dr{\`e}ze and Stephen J. Hoch},
We investigate two ways to increase sales and customer loyalty by taking advantage of a store's installed base of current customers. We propose a classification of products into two types. Products of Type 1 are products for which consumers have a loyalty to a specific retailer and, as far as possible, always shop at that retailer for these products. The other products (Type 2) are not associated with any retailer and are bought at whichever retailer consumers happen to shop when they plan or… CONTINUE READING
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