To tier or not to tier: An analysis of multitier loyalty programs׳ optimality conditions

We analyze the effectiveness of multitier customer loyalty programs (LPs), based on which more loyal members are rewarded with disproportionately higher benefits. We develop a theoretical model to address this essential, yet understudied, question: what are the conditions under which the multitier s...

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Bibliographic Details
Published in:	Omega (Oxford) Vol. 74; pp. 20 - 36
Main Authors:	Gandomi, Amir, Zolfaghari, Saeed
Format:	Journal Article
Language:	English
Published:	Elsevier Ltd 01.01.2018
Subjects:	Game theory Logit model Markov chain Multitier loyalty rewards Nonlinear programming Markov chain Nonlinear programming Logit model Multitier loyalty rewards Game theory
ISSN:	0305-0483, 1873-5274
Online Access:	Get full text
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