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


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 segme 2011). Despite this growth in the use of promotions, particularly in the fast moving consumer goods (fmcg) sector, consideration of their impact and effectiveness among academics has been limited. It has been identified as an important area for future research, as has the greater use of supermarket panel data to provide insights into how different shoppers respond to price changes, including promotions (Grewal & Levy 2009). Moreau (2001) assert that a lack of understanding by retailers about consumer perceptions of promotions can lead to weaknesses in their marketing strategies. Thus, as the use of promotions continues to grow, it is increasingly important to gain a more complete understanding of how consumers actually behave in response to different promotional activities.

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