The use of loyalty-cards databases: Differences in regular price and discount sensitivity in the brand choice decision between card and non-card holders

Cortiñas, Mónica, Margarita Elorz and Múgica, José Miguel

Journal of Retailing and Consumer Services, 2008, vol. 15, issue 1, 52-62

Abstract: In the retail food sector, databases generated by customer loyalty programs are becoming increasingly important. The information stored in them helps retailers’ decisions relating to pricing policies, promotions, inventories and category management in general. This paper analyzes the data on loyalty-card holders for 10 different product categories using multinomial logit models, and finds that the brand choice information may not be applicable to all purchases made in the outlet. Loyalty-card holders exhibit some distinctive behavior. When there are differences, card holders are less sensitive to regular prices, but they are more sensitive for price promotions in certain product categories.

Keywords: Customer loyalty programs; Customer databases; Brand choice problem (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0969698907000264
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:15:y:2008:i:1:p:52-62

DOI: 10.1016/j.jretconser.2007.03.006

Access Statistics for this article

Journal of Retailing and Consumer Services is currently edited by Harry Timmermans

More articles in Journal of Retailing and Consumer Services from Elsevier
Bibliographic data for series maintained by Catherine Liu ().