Healthy foods, healthy sales? Cross-category effects of a loyalty program promoting sales of fruit and vegetables

• DOI: 10.1016/j.jretai.2023.12.002
• Publication Date: 2024-01-11T20:45:30Z
• Authors: Luca A. Panzone; Barbara Tocco; Ružica Brečić; Matthew Gorton
• Keywords: Loyalty program; Consumption

Globally, consumption of Fruit and Vegetables (F&V) remains below nutritional guidelines. With retailers accounting for a large portion F&V sales, marketing can be key to increase at household level. However, challenge is the design strategies that benefit retailers, e.g., improving loyalty, whilst promoting societal goals. This study evaluates points-plus-cash loyalty program where participants received points by purchasing selected F&V, redeemable against reward (plush toys in shape F&V). We estimate impact comparing expenditures several categories before, during, after promotional period, across two different years, consumers who redeemed those did not. use card data from Croatian retailer, containing food expenditure five 268,359 consumers, over 27 weeks 2 years. find increased focal retailer during period. was only reward-redeemers, whom as well other categories. effect persisted – declining rate stopped. Exposure had limited campaign, leading reduction Results indicate sales create win-win benefits both society retailer: it increases on healthy foods (F&V), while overall (i.e., expenditures) amongst motivated consumers.