Impact of free customer credits on purchases: Case of a major discount portal
| Author: | Bc. Theodor Petřík |
|---|---|
| Year: | 2020 - summer |
| Leaders: | Mgr. Kateřina Chadimová |
| Consultants: | |
| Work type: | Bachelors |
| Language: | English |
| Pages: | 68 |
| Awards and prizes: | |
| Link: | https://is.cuni.cz/webapps/zzp/detail/214079/ |
| Abstract: | The aim of this thesis is an empirical assessment of a customer loyalty program operated by a significant discount portal. A four-year sample comprised of purchases of 50,000 regularly active customers was examined using the time series approach. Two methods were used to evaluate the impact of the free customer credits on sales and the credits spent. Neither ARIMA (auto-regressive integrated moving average model) nor a business forecasting procedure Prophet discovered any significant evidence which would support the alleged credit impact. Overall, the study revealed that the customer loyalty program could be operated for years, burden the firm financially, yet bring no meaningful, measurable results. |
