Advance planning models in managing coalition loyalty programs

Principal Investigator: Aaron L. Nsakanda, Supply Chain Management
Project Title: Advance Planning Models in Managing Coalition Loyalty Programs
Funder: NSERC Discovery

This research project explores planning and operational issues faced by loyalty reward programs (LRPs), with a particular focus on coalition loyalty programs (CLPs). A subset of LRP owned and managed by a “host” firm operating independently of its commercial partners, CLPs develop customer loyalty not around a product or service, but around their “branded” program and its reward system. Prominent Canadian examples of CLPs include AEROPLAN® and AIR MILES®.

Focusing on the case study of AEROPLAN®, this research will employ a range of methodologies (e.g., approximation, robust optimization, Markov chain, simulation, and game theory) to study and support the operational, tactical, and strategic decisions faced by CLP managers. Initial outcomes will focus on CLP management, but the methodologies developed will contribute to supply chain management as a whole by advancing stochastic programming, robust optimization, and large-scale optimization.