Loyalty programs (LPs) are widely used by firms but not well understood. These programs provide discounts and perks to loyal customers and are costly to administer, but produce uncertain changes in spending patterns. We use a large and detailed dataset on customer shopping behavior at one of the...

Loyalty programs are a widespread marketing tool whose contribution to a company's economic success is still being questioned. From a marketing relationship perspective, they cannot be terminated easily and their elimination has to be reasoned. This qualitative study examines why companies end...