Using supermarket loyalty card data to analyse the impact of promotions

The aim of this paper is to show how supermarket loyalty card data from a panel of over 1.4 million shoppers can be used to analyse the effect of price promotions in a way which can bring significant advantages to retailers and manufacturers when making promotional decisions.

Using supermarket loyalty card data to analyse the impact of promotions

Melanie Felgate and Andrew Fearne

University of Kent

Salvatore DiFalco

London School of Economics

Marian Garcia Martinez

University of Kent

Introduction

The use of promotions in retailing has increased rapidly in recent times, yet more often than not promotions are being implemented with an inadequate understanding of which mechanisms are most effective, for which products and for which shopper segments (Felgate et al.2011). Despite this growth in the use of promotions, particularly in the fast moving consumer goods (fmcg) sector, consideration of their impact and...

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