Many consumers have had the experience of entering discount membership clubs to make a few purchases, only to leave with enough pasta to outlast a nuclear winter. We suggest that the presence of membership fees can lead consumers to infer a quot;fees -gt; savingsquot; link, spurring them to...

We empirically investigate consumer dynamics within a revenue-based loyalty program in which members are rewarded based on their accumulated spending. We study the impact of four program design features on member purchase behavior, including membership requirements, nonlinear point redemption...