Human dynamics of spending: Longitudinal study of a coalition loyalty program

Il Gu Yi; Hyang Min Jeong; Woosuk Choi; Seungkwon Jang; Heejin Lee; Beom Jun Kim

doi:10.1016/j.physa.2014.05.050

Human dynamics of spending: Longitudinal study of a coalition loyalty program

Il Gu Yi, Hyang Min Jeong, Woosuk Choi, Seungkwon Jang, Heejin Lee, Beom Jun Kim

Graduate School of International Studies

Research output: Contribution to journal › Article › peer-review

Abstract

Large-scale data of a coalition loyalty program is analyzed in terms of the temporal dynamics of customers' behaviors. We report that the two main activities of a loyalty program, earning and redemption of points, exhibit very different behaviors. It is also found that as customers become older from their early 20's, both male and female customers increase their earning and redemption activities until they arrive at the turning points, beyond which both activities decrease. The positions of turning points as well as the maximum earned and redeemed points are found to differ for males and females. On top of these temporal behaviors, we identify that there exists a learning effect and customers learn how to earn and redeem points as their experiences accumulate in time.

Original language	English
Pages (from-to)	391-398
Number of pages	8
Journal	Physica A: Statistical Mechanics and its Applications
Volume	410
DOIs	https://doi.org/10.1016/j.physa.2014.05.050
Publication status	Published - 2014 Sept 15

Bibliographical note

Funding Information:
B.J.K. was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government (MEST) (No. 2011-0015731 ).

All Science Journal Classification (ASJC) codes

Statistics and Probability
Condensed Matter Physics

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10.1016/j.physa.2014.05.050

Cite this

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title = "Human dynamics of spending: Longitudinal study of a coalition loyalty program",

abstract = "Large-scale data of a coalition loyalty program is analyzed in terms of the temporal dynamics of customers' behaviors. We report that the two main activities of a loyalty program, earning and redemption of points, exhibit very different behaviors. It is also found that as customers become older from their early 20's, both male and female customers increase their earning and redemption activities until they arrive at the turning points, beyond which both activities decrease. The positions of turning points as well as the maximum earned and redeemed points are found to differ for males and females. On top of these temporal behaviors, we identify that there exists a learning effect and customers learn how to earn and redeem points as their experiences accumulate in time.",

author = "Yi, {Il Gu} and Jeong, {Hyang Min} and Woosuk Choi and Seungkwon Jang and Heejin Lee and Kim, {Beom Jun}",

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T2 - Longitudinal study of a coalition loyalty program

AU - Yi, Il Gu

AU - Jeong, Hyang Min

AU - Choi, Woosuk

AU - Jang, Seungkwon

AU - Lee, Heejin

AU - Kim, Beom Jun

N1 - Funding Information: B.J.K. was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government (MEST) (No. 2011-0015731 ).

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AB - Large-scale data of a coalition loyalty program is analyzed in terms of the temporal dynamics of customers' behaviors. We report that the two main activities of a loyalty program, earning and redemption of points, exhibit very different behaviors. It is also found that as customers become older from their early 20's, both male and female customers increase their earning and redemption activities until they arrive at the turning points, beyond which both activities decrease. The positions of turning points as well as the maximum earned and redeemed points are found to differ for males and females. On top of these temporal behaviors, we identify that there exists a learning effect and customers learn how to earn and redeem points as their experiences accumulate in time.

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Human dynamics of spending: Longitudinal study of a coalition loyalty program

Abstract

Bibliographical note

All Science Journal Classification (ASJC) codes

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