@techreport{165e547c82c7426aa9d5b803eab239a6,
title = "Do Loyalty Programs Enhance Behavioral Loyalty: An Empirical Analysis Accounting for Program Design and Competitive Effects",
abstract = "This paper studies the effects of loyalty programs on share-of-wallet using market-wide household panel data on supermarket purchases.We find that loyalty programs relate positively to share-of-wallet, but the programs differ in effectiveness and some are ineffective.Both a saving component and a multi-vendor structure enhance the effectiveness of a loyalty program, but high discounts do not lead to higher share-of-wallets.Further, if households have multiple loyalty cards, the effectiveness of a specific loyalty program is much smaller.The positive loyalty program effects on share-of-wallet entail substantial additional customer revenues.However, given the high number of loyalty programs already available in the market, our model predicts that a new loyalty program introduction will only lead to small effects on share-of-wallet.",
keywords = "loyalty, marketing, retailing",
author = "J. Leenheer and T.H.A. Bijmolt and {van Heerde}, H.J. and A. Smidts",
note = "Subsequently published in the International Journal of Research in Marketing, 2007 (rt) Pagination: 45",
year = "2002",
language = "English",
volume = "2002-65",
series = "CentER Discussion Paper",
publisher = "Marketing",
type = "WorkingPaper",
institution = "Marketing",
}