Cineplex Entertainment: The Loyalty Program

In 2007, the marketing director for Cineplex Entertainment is trying to decide whether or not to proceed with a loyalty program that would provide incentives for customers to see more movies and events, and spend more on concessions. An important by-product would be the collection of detailed customer buying data. She has crafted four possible combinations of rewards and received proposals from three suppliers with experience in managing customer data banks. She must decide the structure and richness of the program, the supplier, the likely response rate to determine financial feasibility, and whether to launch regionally or nationally.