Many retailers use loyalty programs to attract new customers and to retain existing ones. The program should be recognized as beneficial to customers in order to build customer loyalty. A critical key of a success of a loyalty program is whether a consumer can perceive and identify the benefits...

This paper examines the effects of supermarket loyalty programs on the demand for private labels (PLs). Using transaction level data on grocery purchases and individual level information on the membership of loyalty programs, I estimate a model of demand in which membership may affect the...