The impact of subscription programs on customer purchases

• Main Authors: IYENGAR, Raghu, PARK, Young-Hoon, YU, Qi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2022
• Subjects: Subscription business; Retailing; E-Commerce; Causal inference; Machine learning; Generalized random forest; Sunk cost fallacy; Marketing; Sales and Merchandising
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7020; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8019/viewcontent/SSRN_id3529681_2022.pdf
• Institution: Singapore Management University

Subscription programs have become increasingly popular among a wide variety of retailers and marketplace platforms. Subscription programs give members access to a set of exclusive benefits for a fixed fee upfront. In this paper, we examine the causal effect of a subscription program on customer beha...