Abstract
The growth in internet adoption has made digital coupons a popular promotional tool. However, the extant literature on digital coupons is at an embryonic stage and requires theory building. This study adopts an inductive grounded theory approach to explore the new horizons for digital coupon redemption. The results showed that the intention to search and subscribe is a key driver of redemption, while coupon proneness and coupon acquisition value are its dimensions. Social media reviews, past experience, privacy risk, and customization are more relevant today for coupon redemption. The study also proposes segmentation of coupon users into deal buyers, planners, and convenience seekers based on consumer behavior.
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