We estimate the joint impact of the frequency reward and customer tier components of a loyalty program on customer behavior and resultant sales. We provide an integrated analysis of a loyalty program incorporating customers' purchase and cash-in decisions, points pressure and rewarded behavior...

This research uses Procter & Gamble's value pricing initiative as a context for testing whether actual competitor and retailer response to a major policy change can be predicted using a game-theoretic model. We first estimate demand functions for P&G and competitor brands from the period before...