Abstract
ABSTRACTFirms spend a lot on coupon promotions and are concerned with their profitability. The characteristics of coupons are associated with success of coupon promotions. This research explores how consumer’s regulatory focus (promotion vs. prevention) and product type (material vs. experience) affect when consumers prefer to redeem coupons (coupon redemption time). Results from two studies show that people’s prevention goal strength is negatively related to redemption time consumers prefer. Besides, a fit between people’s regulatory focus and product type leads to earlier redemption than unfit condition. Specifically, experiential purchases are compatible with promotion-focused consumers and material purchases are compatible with prevention-focused consumers. We discuss the findings in the contexts of coupon research and theory on regulatory focus, and further posit managerial implications for the design of coupon promotions or other marketing activities with limited duration.
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