Bonus cards. Most people will have at least one in their wallet. But why do people have bonus cards? The reason is that when they shop regularly at a certain store, they can get discounts and other extra benefits and services. Consumers like discounts, because everyone wants to get as much as possible at the lowest cost. So bonus cards are very useful, all you have to do is become a regular customer and you can get a discount. It seems like friendliness on the part of the store. But is it above all an act of friendship or is there also some advantage for the company? And if there is, are suppliers using these loyalty rewards only as a means to make consumers more dependent on suppliers? We will discuss this question from the consumer's point of view. All businesses maximize profit. Without profits they cannot have a sustainable existence. Consequently, all decisions made by a firm are intended to increase profits (Roberts, 1986). Businesses act out of self-interest, as Adam Smith pointed out more than 200 years ago (Smith, 1991). Companies do not act out of benevolence, but out of self-interest. This also includes providing discounts and loyalty rewards. Companies give discounts, because this attracts new consumers, as they are looking for low prices (Parguel, Pechpeyrou, Sabri-Zaaraoui, & Desmet, 2007). Attracting new customers means higher revenues and greater profits. The next task of a company is to retain customers. By offering loyalty rewards, people will return to your store. This also creates a disincentive for consumers to shop elsewhere, because by doing so they forgo additional discounts or benefits. Businesses then gain more revenue and profits thanks to these loyal customers. Research has also shown that loyal customers...... middle of paper ......M., & Backhaus, C. (2012). Consequences of customer loyalty to the loyalty program and the company. Journal of the Academy of Marketing Sciences, 40(5), 625-638.Gremler, D., & Brown, S. (1998). The ripple effect of loyalty: Appreciating the full value of customers. International Journal of Service Industry Management, 10(3), 271-291. Parguel, B., Pechpeyrou, P. D., Sabri-Zaaraoui, O., & Desmet, P. (2007). Effects of format on volume discounts to customers. Journal of Product & Brand Management, 16(5), 348.Roberts, J. (1986). A predatory price signaling model. Oxford Economic Papers, 38, 75.Smith, A. (1991). An inquiry into the nature and causes of the wealth of nations (Vol. I). London: David Campbell Publishers Ltd. Taylor, G., & Neslin, S. (2005). The current and future sales impact of a rewards program on retail frequency. Retail Journal, 81(4), 293-305.