Cross merchandising

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Cross merchandising
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Cross merchandising refers to related products being display together. It is the practice of showing products from different categories (or store departments) in one place, in order to generate additional revenue-also known as add-on sales, or incremental purchase. This is done in conjunction with customer-centric strategies, aimed at improving the overall customer experience.

Cross merchandising improves the image of a store and promoted the look of a certain lifestyle for customers to buy into. It illustrated the variety of selection or the breadth of product a store carries. For example: Batteries displayed next to electronic items: gardening glove placed near lawn-care products; a range of shampoo kept along with conditioners or other hair-care products[1] .

Cross merchandising refers to the display of opposite and unrelated products together to earn additional revenues for the store. Products from different categories are kept together at one place for the customers to find a relation among them and pick up all. Cross merchandising can also be used behind the cash counters on pegs (impulse)[2] .

Features of cross merchandising

There are several features according to cross merchandising[3]:

  • unrelated products are displayed together
  • the retailer makes profits by linking products which are not related in any sense and belong to different categories
  • cross merchandising helps the customer to know about the various options which would complement their product
  • cross merchandising makes shopping a pleasurable experience as it saves customer's precious time

Main advantages of cross merchandising

Merchandising gives customers ideas and suggestions on how to carry out the ideas. Below the several advantage of cross merchandising[4]:

  1. Customers want convenience and one-stop shopping
  2. Cross merchandising suggests related items
  3. It organizes products the way they are used
  4. It can suggest better quality items
  5. It appeals to consumers' desire to save time
  6. It makes shopping easier
  7. It gives customers project information

Examples of cross merchandising

Cross merchandising is a very effective way of increasing impulse purchases and displaying seasonal merchandise and new products, for example[5]:

  • mobile covers displayed next to mobile phone
  • recharge coupons with new SIM cards
  • batteries with electronic appliances
  • neck ties or cuff links displayed with men' shirt
  • fashion jewellery, rings, anklets, hand bags with female dresses
  • shoe laces, shoe shiners, shoe racks with shoes
  • audio CDs with CD Players

Footnotes

  1. S. Bhalla, S. Anuraag 2010, p.157
  2. T.L. Prabhu 2019, p.322
  3. T.L. Prabhu 2019, p.323-324
  4. J.A. Spears 2011, p.180
  5. J. Perrey, D. Spillecke 2011, P.178

References

Author: Kinga Krzyściak