Working Papers

Market Positioning Using Cross-Reward Effects in a Coalition Loyalty Program

Valeria Stourm, Eric T. Bradlow, and Peter S. Fader

Jan 9, 2019

Models purchase incidence across forty stores within a European city to analyze how a coalition’s reward currency influences how customers purchase across partner stores. Includes (1) measuring reward cross effects, (2) testing hypotheses on how these effects vary across stores, (3) visualizing the market structure of the coalition, (4) calculating metrics that summarize how much stores influence and are influenced by others’ rewards, and (5) analyzing how cross-reward effects change when the value of the shared reward currency is high versus low.

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