Expanding Markets or Capturing Share? The Effects of Subscription on Spending and Share-of-Wallet in Restaurant Delivery – MSI

Working Paper

Expanding Markets or Capturing Share? The Effects of Subscription on Spending and Share-of-Wallet in Restaurant Delivery

Daniel M. McCarthy, Shin Oblander, Young-Hoon Park, and Yeohong Yoon

Aug 27, 2024

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Uses a Difference-in-Differences analysis to determine how subscribing to a delivery service affects consumer purchases among participating restaurants and alternative food providers.

Topics

Competition & Markets Consumer Behavior & Insights

research recap

Food Service Subscription Plans Deliver for Both Customers and Companies

Monthly subscription programs can save consumers money on food delivery and other frequently used services. They may also increase purchases and share of wallet for participating companies, especially among customers who previously patronized competitors. When evaluating marketing interventions, managers should include such within-category and across-category treatment effects.

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