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Emperical Study of the Relationship of Customer Trust and Customer Loyalty under Cross-selling Adjustment

Author: ZhangYing
Tutor: CaoZheng
School: Zhejiang University of Technology
Course: Business management
Keywords: Customer Trust Cross-selling Customer Loyalty Adjustment
CLC: F274
Type: Master's thesis
Year: 2013
Downloads: 24
Quote: 0
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As the saturation of the market and competition intensifies, the costs that enterprise abtains new customers is increasing. How to cultivate customers’loyalty and improve sales performance of enterprises based on the existing customer resources has become the focus of many enterprises’common concern. And the establishment of the trust between customer and the enterprise and cross-selling are two important methods to solve this problem. However, whether customers’trust influences the customer loyalty positively, and whether cross-selling adjusts the relationship of customer trust and customer loyalty positively is the starting point and purpose of the study.Based on the previous research results, this article, which defines the customer relationship trust as an independent variable, customer loyalty as a dependent variable, cross-selling as a moderating variable, uses the empirical research method to study the relationship of customer trust and customer loyalty without the cross-selling variable, as well as with the cross-selling variable. Through the research, this paper found that cross-selling has an influence between customer relationship trust and customer loyalty, as well as the two dimensions of customer relationship trust and customer loyalty, then analyzes the conclusion of the paper, and put forward corresponding suggestions according to the sales of cosmetics.Through the research, this paper draws the following conclusions:(1) without the cross-selling variable, the impact of customer trust and customer loyalty as well as the two dimensions of them are positive and significant.(2) Under the cross-selling mode, the impact of customer trust to customer loyalty are mostly negative and significant. Affective trust and cognitive trust had reverse influence on customer’s behavioral loyalty, whereas the effect of affective trust and cognitive trust towards customers’ attitudinal loyalty are not significant.Based on the above conclusions, this paper argues that the appearance of the conclusion mainly due to the inappropriate implementation of cross-selling, therefore brings consumers emotional antipathy in the sales process, and thus weakens consumer’s loyalty to retailers. Finally, the paper puts forward some suggestions on how to properly implement cross-selling in sales process:(1) Conducting customer segmentation and positioning customer clearly;(2) Cosmetics retailers and brand owners should act with each other closly, working together to promote cross-selling;(3) Improving the organizational structure of cosmetics retailing enterprise;(4) Selecting product portfolio carefully;(5) Using reasonable pricing method;(6) Focusing on training of the salesmen and equipping them of cross-selling skills and qualities;(7) Making use of the Internet platform, participating in the web-marketing.

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