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People with linear time -orientation view life in past, present and future terms.
Tam and Dholakia found that those with a cyclical mentality will likely save over time because they tend to believe that their future situation will be similar to what it is now.
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But sometimes, a lack of savings could be more of a psychological phenomenon than a monetary one.
Research regularly shows that saving money demands a great deal of forethought, self-control and willpower — capabilities that are in direct conflict with our innate desires for pleasure and satisfaction in the here and now.
Those customers are going to stick around and become long-term customers.
For the remaining issuers, Magnify Money estimated the cost of rewards.
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“The belief is that if you perform an action in the current cycle now, you will be more likely to perform this particular action in the next cycle,” Tam and Dholakia wrote.
“But if you do not perform now, you will be less likely to perform it in the next cycle.” The importance of time perspective is also underlined in a 2014 study performed by renowned psychologist Philip Zimbardo in partnership with Magnify Money.