March 22, 2004

BJ's, Costco, And Sam's Club Win Loyalty With Price

by Kate Delhagen

with Charles P. Wilson, Joshua Walker, Esther H. Yuen

Executive Summary (This is a document excerpt)

A majority of BJ's, Costco, and Sam's Club shoppers say they are loyal to their discount club. The unique structure of discount clubs — where shoppers pay for access to discounted prices — means that more than 80% of these loyal shoppers say they are loyal to their club because of price. Membership fees prove an effective means of locking in loyalty, as discount club shoppers are also infrequent cross-shoppers.

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