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Lo yalty Pr o g r ams As part of a sales promotion program, lo yalty p r o g r ams are specifically
designed to retain customers by offering premiums or other incentives to customers who make
multiple purchases over time. Such sales promotions are growing increasingly popular and are often
tied to long-term CRM systems. (Loyalty programs are examined in Chapters 2 and 16.)
Po in t-o f-p u r ch ase (POP) Disp lays Po in t-o f-Pu r ch ase Disp lays are merchandise displays
located at the point of purchase, such as at the checkout counter in a supermarket. Retailers have
long recognized that the most valuable real estate in the store is at the POP (point of purchase).
Customers see products like a magazine or a candy bar while they are waiting to pay for their
purchases, and impulsively purchase them. In the Internet version of a point-of-purchase display,
shoppers are stimulated by special merchandise, price reductions, or complementary products that
Internet retailers feature on the checkout screen.
p. 556 connect.mcg r aw- hill.com/connect/hmEBook.do?setTab= sectionTabs 5/10 9/15/13 M cGr aw- Hill Connect - Ebook Point-of-purc has e (POP) dis plays are loc ated at the point of purc has e s uc h as a c hec k out c ounter in a
s upermark et. They are very effec tive for s timulating impuls e purc has es . Re b ate s Re b ate s are a particular type of price reduction in which a portion of the purchase price is
returned by the seller to the buyer in the form of cash. Many products, such as consumer electronics,
offer significant mail-in rebates that may lower the price of the item significantly. Some companies
enjoy the added exposure when they appear on consumer websites like PriceGrabber.com and
Nextag.com where products are sorted by the price and then link the customer to the retailer's
website. F irms offer such generous rebates because the likelihood that consumers will actually apply
for the rebate is low. T he firms garner considerable value from rebates because they attract
consumers but they may not have to pay off all the rebates offer...
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This note was uploaded on 01/25/2014 for the course BADM 320 taught by Professor Staff during the Winter '08 term at University of Illinois, Urbana Champaign.
- Winter '08