Abstract
Coupons research has typically focused on single-coupon redemption, with scant attention devoted to multiple, competing coupons. To bridge this gap, we observe supermarket shoppers who used their smartphones to scan products in-store, receiving both coupons for the scanned product and several others as a result. We model the determinants of redemption in this context, particularly net price range (NPR), coupon value, brand loyalty, and number of coupons. Latent class analysis uncovers two consumer segments: brand-focused shoppers (79.9%), who use internal reference prices, and deal-prone shoppers (20.1%), who use stimulus-based reference prices. Targeting by means of segment membership, NPR, and loyalty is indispensable: the same $0.50 coupon can have a redemption probability as low as 30% and as large as 80%, depending on these characteristics. Overall, the study sheds light on drivers of redemption under competition and provides managers with a blueprint to improve redemption rates by targeting shoppers with customized coupons.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
