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This document analyzes the effects of loyalty programs on customer purchasing behavior using market-wide panel data from the Dutch supermarket industry. It addresses issues of endogeneity and uses instrumental variables to account for the two-sided causality between loyalty program membership and customer purchasing. The study finds that loyalty programs positively influence customer share-of-wallet on average, but some programs give more value to members than they earn in additional revenues. The effective

Author

Ciet Mba

Language

EN