Assessing the Customer-Based Impact of Up-Selling Versus Down-Selling

Our findings are based on a field study conducted among 2,381 customers from a large, national casual dining chain. We then followed up with 352 customers 1 month later to determine the impact of the suggestive selling strategy on future visitation.

We find that while up-selling did improve short-term revenues, it had an adverse effect on customers’ attitudinal responses which resulted in a reduction in future brand patronage. Conversely, down-selling did not compromise short-term revenues as is commonly thought, and also led to a superior attitudinal response and increased brand patronage. We demonstrate that the effect of the suggestive selling strategy on satisfaction and brand loyalty is chain mediated through value and quality.