Canadian Tire has one of the oldest, most well-known loyalty programs in Canada, Canadian Tire money. Examine Notes 3 and 22 regarding customer loyalty and answer the following questions:
a. Why do companies have loyalty programs?
b. What is the obligation that Canadian Tire has as a result of issuing paper and electronic Canadian Tire Money?
c. What is the amount of Canadian Tire's provision for customer loyalty on December 31, 2011?
d. How does Canadian Tire estimate the amount of the provision?