Retailer choice and loyalty schemes—evidence from Sweden
AbstractFrom economic theory, it is known that consumer loyalty schemes can have lock-in effects resulting in entry barriers and higher prices. This paper concerns consumer loyalty schemes where the main issue is to test the hypothesis that loyalty scheme membership affects the choice of food retailer. This choice is modeled as a random utility maximization problem estimated with maximum likelihood. Based on a data set covering 1,551 Swedish households, we find evidence supporting this hypothesis. Further, according to the results, store characteristics and geographical distance matter for the choice of retailer while household characteristics are not found to have a significant effect.
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Bibliographic InfoArticle provided by Springer in its journal Letters in Spatial and Resource Sciences.
Volume (Year): 3 (2010)
Issue (Month): 3 (October)
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Web page: http://www.springer.com/economics/journal/12076
Other versions of this item:
- Lundberg, Johan & Lundberg, Sofia, 2010. "Retailer Choice and Loyalty Schemes - Evidence from Sweden," UmeÃ¥ Economic Studies 801, Umeå University, Department of Economics.
- Lundberg, Johan & Lundberg, Sofia, 2010. "Retailer Choice and Loyalty Schemes - Evidence from Sweden," UmeÃ¥ Economic Studies 34, Umeå University, Department of Economics.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- L49 - Industrial Organization - - Antitrust Issues and Policies - - - Other
- L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
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