When modeling consumers' forward-looking behavior using choice data on frequently purchased products, the common approach assumes that consumers have rational expectations about future promotions. Previous studies modeled such expectations using a first-order Markov (FOM) process. However,...

Paying membership fees in exchange for membership privilege has recently gained popularity in loyalty program design. However, the effectiveness of such Paid Loyalty Programs (PLPs) has not been studied. The current research examines the impact of the PLP enrollment on consumers' spending and...