Upselling Strategy and Consumer Repurchase Intention based on Prospect Theory

Document Type : علمی - پژوهشی

Authors

1 Business Administration Department, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran.

2 Business Administration Department, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran

3 Business Administration Department, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran.

10.52547/jbmp.2023.231280.1488

Abstract

Objective: This study aims to design and develop a model for upselling using a behavioral approach based on Prospect theory that can be evaluated and implemented in the context of Internet packages as a case study.
Methodology: This study utilizes a development descriptive approach to data collection, focusing on potential consumers of internet packages in Iran. A quantitative research strategy was employed, and cross-sectional data were collected from both predecessor data stored in the database of one of the high-ranked companies selling Internet packages. The data were analyzed using the theory and model obtained in this study.
Findings: The literature review and the model were tested on actual data from one of the high-ranked companies selling Internet packages, resulting in modeled indifference curves and customer behavior regarding packages. Using this model, the intersection of the indifference curve and supply line introduces the overwhelming possibility in the next step.
Conclusion: The findings of this study suggest that customers are more likely to make a purchase when they feel less uncomfortable about losing money and tend to receive additional services. This is illustrated by the indifference curve at the intersection with the supply line. By analyzing the perceived value of the company's services, this model can help businesses determine the appropriate discount or strategy.

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Journal of Business Management Perspective
Volume 21, Issue 52 - Serial Number 86
February 2023
Pages 154-175

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History

  • Receive Date: 09 February 2023
  • Revise Date: 18 March 2023
  • Accept Date: 19 March 2023

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