Why Do People Save Loyalty Points?
Episode Description
Consumers today often belong to a host of retail ‘loyalty programs,’ earning redeemable points when they spend. So why do so many people stockpile points instead of use them? More: http://knlg.net/1g3aNpm 📂 Marketing 🏷️ Research
Brief Summary
Consumers often stockpile points in linear loyalty programs due to separate mental accounts for cash and points, affecting their spending behavior.
Key points
- Understanding Loyalty Programs. Exploring the dynamics of loyalty programs and consumer behavior.
- Mental Accounting in Loyalty Programs. How consumers differentiate between cash and points in spending decisions.
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Episode highlights
- Understanding Loyalty ProgramsExploring the dynamics of loyalty programs and consumer behavior.“People stockpile points in a linear program, and it's weird.”1:39Jun 30, 2015
- Mental Accounting in Loyalty ProgramsHow consumers differentiate between cash and points in spending decisions.“It's not that points and dollars are equally interchangeable.”3:25Jun 30, 2015
Tension
45/ 100Some tension
