Cross merchandising

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Cross merchandising is the practice of marketing, or displaying products from different categories (or store departments) together, in order to generate additional revenue, known sometimes as add-on sales, or incremental purchase. This can often be done in conjunction with customer-centric strategies, aimed at improving the overall customer experience. ^[1]

Product selection in most retail environments is based on consumer usage patterns. Retail stores will also sometimes categorize certain demographics of customers, such as hockey mom, students, techies, etc. in order to target product offerings more narrowly.^[2] Examples would include:

• Displays, which may feature a complete clothing ensemble on a mannequin, or a complete set of furniture in a showcase window.

• Merchandising, which involves the actual positioning or stocking of merchandise on shelves, pegs or other fixtures; batteries featured next to electronic items, gardening gloves featured next to lawn care products, or lighthouse calendars featured next to books about New England.^[3]

References

1. ^ http://www.allbusiness.com/glossaries/cross-merchandising/4960184-1.html
2. ^ http://www.teradata.com/library/pdf/eb8032.pdf
3. ^ http://www.magazine.org/ASSETS/C4052C6CE5DC4AA6BE281A2EAF5FD130/crossmerchandising.pdf