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Using Supermarket Loyalty Card Data to Inform Better Promotional Strategies

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Listed:
  • Felgate, Melanie
  • Fearne, Andrew

Abstract

This paper reports the use of loyalty card data from one of the biggest retailers in the world – Tesco - to analyse the impact of promotions. The aim is to demonstrate how such data can bring significant benefits to retailers and manufacturers when deciding promotional strategies, over and above traditional scanner datasets, which the majority of existing research is based around (E.g. Raju, 1992; Macé and Neslin, 2004; and Martínez-Ruiz et al. 2006). Regression analysis is used to compare the effects of different promotional mechanics upon different cuts and tiers of product across the fresh beef category in Tesco; using both scanner data and loyalty card data. The results show that using loyalty card data, which enables us to control for shopper life-stage and region (something which cannot be achieved using scanner data), produces more statistically significant results and provides a more detailed picture of how promotions influence sales.

Suggested Citation

  • Felgate, Melanie & Fearne, Andrew, 2012. "Using Supermarket Loyalty Card Data to Inform Better Promotional Strategies," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144966, International European Forum on System Dynamics and Innovation in Food Networks.
    • Handle: RePEc:ags:iefi12:144966
    DOI: 10.22004/ag.econ.144966
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    References listed on IDEAS

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    1. Ruth N. Bolton, 1989. "The Relationship Between Market Characteristics and Promotional Price Elasticities," Marketing Science, INFORMS, vol. 8(2), pages 153-169.
    2. Grewal, Dhruv & Levy, Michael, 2009. "Emerging Issues in Retailing Research," Journal of Retailing, Elsevier, vol. 85(4), pages 522-526.
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    Cited by:

    1. Sheraz Alam Malik & Martin K. Hingley, 2021. "Consumer demand information as a re-balancing tool for power asymmetry between food retailers and suppliers," Economia agro-alimentare, FrancoAngeli Editore, vol. 23(2), pages 1-20.
    2. Malik, Sheraz Alam & Hingley, Martin K., . "Consumer demand information as a re-balancing tool for power asymmetry between food retailers and suppliers," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 23(2).
    3. Sadahiro, Yukio, 2021. "A method for analyzing the daily variation in the spatial pattern of market area," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    4. Rains, Tim & Longley, Paul, 2021. "The provenance of loyalty card data for urban and retail analytics," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    5. Bacha, Bouchra & Bouchery, Yann & Babai, M. Zied & Jemai, Zied, 2026. "Impact of pricing and replenishment decisions on food waste at stores and households," International Journal of Production Economics, Elsevier, vol. 291(C).
    6. Bogomolova, Svetlana & Dunn, Steven & Trinh, Giang & Taylor, Jennifer & Volpe, Richard J., 2015. "Price promotion landscape in the US and UK: Depicting retail practice to inform future research agenda," Journal of Retailing and Consumer Services, Elsevier, vol. 25(C), pages 1-11.
    7. Andrew Fearne & Natalia Borzino & Beatrix De La Iglesia & Peter Moffatt & Margaret Robbins, 2022. "Using supermarket loyalty card data to measure the differential impact of the UK soft drink sugar tax on buyer behaviour," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 321-337, June.
    8. Amelie A. Hecht & Crystal L. Perez & Michele Polascek & Anne N. Thorndike & Rebecca L. Franckle & Alyssa J. Moran, 2020. "Influence of Food and Beverage Companies on Retailer Marketing Strategies and Consumer Behavior," IJERPH, MDPI, vol. 17(20), pages 1-34, October.
    9. Sue Hornibrook & Claire May & Andrew Fearne, 2015. "Sustainable Development and the Consumer: Exploring the Role of Carbon Labelling in Retail Supply Chains," Business Strategy and the Environment, Wiley Blackwell, vol. 24(4), pages 266-276, May.

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