Do Loyalty Programs Enhance Behavioral Loyalty ? A Market-Wide Analysis Accounting for Endogeneity

@inproceedings{LeenheerDoLP,
  title={Do Loyalty Programs Enhance Behavioral Loyalty ? A Market-Wide Analysis Accounting for Endogeneity},
  author={Jorna Leenheer and Tammo H. A. Bijmolt and Harald J. van Heerde}
}
This paper studies the effects of loyalty programs on behavioral loyalty using market-wide panel data on supermarket purchases. We present a conceptual framework relating loyalty program membership to share-of-wallet. To account for the two-sided causality between these variables, we specify a model for the loyalty program decision and use instrumental… CONTINUE READING