In the 1990's all the largest grocery retailers have introduced loyalty cards with the specific goal of acquiring consumer knowledge. The use of loyalty cards as a knowledge tool has become so critical that retailers offer customers rewards in return for card subscription and continuous use,...

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...