Stockpiling Points in Linear Loyalty Programs
Valeria Stourm, Eric Bradlow and Peter Fader build a model of how customers decide when to redeem loyalty points in a linear programme, one where holding points earns no extra reward. The model combines economic, cognitive and psychological explanations for stockpiling, and captures the psychological one by letting customers keep points and cash in separate mental accounts. Estimated on data from an international retailer, it forecasts redemptions accurately over an 11-month holdout period. The results show wide differences among customers and suggest that cognitive and psychological factors drive stockpiling more than economic ones.
Valeria Stourm, Eric Bradlow and Peter Fader build a model of how customers decide when to redeem loyalty points in a linear programme, one where holding points earns no extra reward. The model combines economic, cognitive and psychological explanations for stockpiling, and captures the psychological one by letting customers keep points and cash in separate mental accounts. Estimated on data from an international retailer, it forecasts redemptions accurately over an 11-month holdout period. The results show wide differences among customers and suggest that cognitive and psychological factors drive stockpiling more than economic ones.
Written from the abstract read 2026-10-21 via Crossref and the publisher record.
What our sources record
Recorded when this source was checked, figures included, with page references and quotation marks removed.
Stourm, V., Bradlow, E. T., & Fader, P. S. (2015). Stockpiling Points in Linear Loyalty Programs. Journal of Marketing Research, 52(2), 253-267. doi:10.1509/jmr.12.0354