Dissertation
Profit maximization with price discounts and in-kind rewards
Doctor of Business Administration (D.B.A.), Drexel University
Jun 2020
DOI:
https://doi.org/10.17918/00001050
Abstract
Consumer loyalty programs have long been a part of retail strategy for firms of all sizes. These programs often attempt to build consumer loyalty through rewards such as cash back, or by awarding 'points' for the purchase of products that can later be redeemed for other goods. This dissertation presents a theoretical framework for profit maximization given marginal cost, the price elasticity of demand and 'reward elasticity of demand' for a good. It then estimates these elasticities for a commodity good at the center of a corporate loyalty program, first using observational data and then using data from a field experiment. The dissertation then uses these estimates to make recommendations regarding the optimal pricing structure and reward plan.
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Details
- Title
- Profit maximization with price discounts and in-kind rewards
- Creators
- Robert Allen Cobb
- Contributors
- Mark Stehr (Advisor)
- Awarding Institution
- Drexel University
- Degree Awarded
- Doctor of Business Administration (D.B.A.)
- Publisher
- Drexel University; Philadelphia, Pennsylvania
- Number of pages
- vii, 82 pages
- Resource Type
- Dissertation
- Language
- English
- Academic Unit
- Bennett S. LeBow College of Business; Drexel University
- Other Identifier
- 991014695139504721