Redemption Rate Research Articles

Developing illustrative examples for revenue recognition in credit card rewards programmes

Orientation: The literature does not provide illustrative examples of specific credit card rewards programme (CCRP) transactions.Research purpose: The objective of the research was to develop and confirm illustrative examples for co-brand CCRPs, complex CCRPs and CCRPs offering cash rewards after the effective date of International Financial Reporting Standard (IFRS) 15.Motivation for the study: Credit card rewards programme management in practice acknowledged the need for illustrative examples of accounting for CCRP transactions.Research approach/design and method: This qualitative study used document analysis to develop the illustrative examples; and to confirm the examples, the Delphi technique was applied.Main findings: Illustrative examples were developed (based on existing literature, including IFRS) that show the differences in accounting treatment based on the type of CCRP. The initial recognition of the award credits liability, the proportionate derecognition of the liability when award credits are redeemed, and a change in the expected redemption rate are included in the examples. The study also clearly indicates the differences in the structure and functioning of each type of CCRP that support the different accounting treatments suggested.Practical/managerial implications: This study contributes to practice by providing CCRPs with illustrative examples that could reduce uncertainty and inconsistencies in practice. The illustrative examples developed make the theory – specifically principle-based IFRS – more practical and could improve faithful representation, as well as make transactions easier to verify (audit).Contribution/value-add: This study underscores the need for educators to train students in applying principle-based standards like IFRS 15 to complex transactions, fostering critical thinking and workplace readiness.

Effects of bitten food images in marketing communications

Marketing communications (e.g., food packages, restaurant menus, coupons, social media posts) often include images of bitten and non-bitten (i.e., complete) foods. Taking an empirics first approach, the current research explores how and why these images influence consumers. A field study shows a higher redemption rate for discount coupons featuring a bitten (vs. non-bitten) food. However, a controlled online study fails to replicate this effect. Two additional preregistered studies shed light on the inconsistent results observed online and in the field by identifying two competing mechanisms catalyzed by bitten food images. Bitten food images lead to vicarious enticement, an automatic process in which a viewer makes sense of a bitten food image by picturing someone approaching and tasting the food, as well as emotional conflict (i.e., the simultaneous activation of positive and negative thoughts and feelings). While vicarious enticement has a positive impact on product responses, emotional conflict has a negative impact. The effect of bitten (vs. non-bitten) food images on product responses appears to depend on the strength of these two mechanisms in a given context. These findings yield insights for researchers examining visual characteristics of food images as well as advertisers designing marketing communications.

Implementing a Food Prescription Program during COVID-19: Benefits and Barriers.

Food prescription programs (Food Rx) have the potential to improve management of diet-related chronic diseases or underlying conditions such as type 2 diabetes (T2D), hypertension, and high body mass index (BMI) among food-insecure patients. The purpose of this study was to examine the effectiveness of a Food Rx program implemented in two community-based clinics in Florida. Data were collected through researcher-administered surveys (food insecurity, demographics, and socio-economic variables) and biometric data (HbA1c, blood pressure, and BMI). Key results include the following: (1) Hispanic patients are more likely to utilize the program than their Black and White counterparts (p < 0.001); (2) older patients (≥50 years) have a higher food redemption rate when compared to younger patients (36-49.9 years); (3) food redemption rate is negatively associated with food security scores indicating improvements in food security status over time (r2 = -0.184, p = 0.036); (4) diabetic patients with higher baseline HbA1c (>9%) have significant reductions in glycated hemoglobin (p = 0.011) over time as compared to patients with lower baseline values (<7%); and (5) patients enrolled in the program for at least 6 months have a significant reduction in systolic blood pressure (p = 0.051). Changes in BMI were not significantly associated with redemption rates. This study is significant as it offers insights into the potential benefits and challenges of implementing Food Rx programs to address diet-related chronic diseases among underserved populations.

Newsvendor model with voucher sales: a distributionally robust approach

AbstractVouchers as a popular short‐term marketing tool are widely used by many firms, through which retailers can lock in customers and obtain working capital in advance. Consumers can use the voucher to reduce the product purchase price to an equal face value or purchase the product at a discount. We apply the classical newsvendor model to study the merits of vouchers for the retailer's ordering decision in the face of uncertainties in both the market demand and voucher redemption rate. We propose a distributionally robust approach to solve this newsvendor problem. The approach only requires the first and second moments of the demand and redemption rate distributions and yields a lower bound on the expected profit. Specifically, we derive the optimal ordering decision in closed form and obtain the optimal expected profit based on the limited distribution information. We find that a higher redemption rate does not necessarily increase the retailer's profit and the voucher quantity, but always increases the retailer's order quantity. Interestingly, we show that when the buyback price of the voucher is relatively high, increasing the voucher redemption rate is more profitable for the retailer. In addition, the retailer's profit, and the quantities of the product and the voucher decrease with the buyback price of the voucher.

A Produce Prescription Program in Eastern North Carolina Results in Increased Voucher Redemption Rates and Increased Fruit and Vegetable Intake among Participants.

Few produce prescription programs have taken place in rural areas, in the context of existing public health programs. Thus, the purpose of this mixed-methods study was to examine voucher redemption rates, change in fruit and vegetable intake, and suggestions for improvement among participants enrolled in a produce prescription program occurring in existing public health programs throughout rural eastern North Carolina. We examined voucher redemption rates and conducted pre- (n = 125) and post-intervention surveys assessing fruit and vegetable intake. t-tests were used to examine changes in intake pre- versus post-intervention among 50 participants. Participants (n = 32) also completed a semi-structured, telephone interview. Qualitative data were thematically analyzed to determine potential improvements. The overall voucher redemption rate was 52%. There was a 0.29 (standard deviation = 0.91, p = 0.031) cup increase in self-reported fruit intake comparing post- to pre-intervention data. Qualitative analyses indicated that participants enjoyed the financial benefits of the program and wanted it to continue. The produce prescription program was successful in increasing self-reported fruit intake among participants. More research is needed to determine if changes in intake persist when measured objectively, and on best methods for the program’s financial sustainability.

Impact of COVID-19 Pandemic on the Fruit and Vegetable Prescription Program in a Pediatric Clinic

ObjectivesHurley Children’s Clinic’s novel fruit and vegetable prescription program aims to improve nutrition intake, household food security, and nutrition access. Children receive $15 prescriptions for fruits and vegetables redeemable at the Flint Farmers’ Market or through the mobile market, Flint Fresh, for a home delivered produce box. The COVID-19 pandemic has spread worldwide, resulting in a national decrease in pediatric visits. Children missed routine well-child and health maintenance visits, including necessary vaccinations and screenings. The aim of this evaluation is to better understand how the pandemic impacted the distribution and redemption of fruit and vegetable prescriptions. MethodsUsing descriptive statistics and chi-square analysis, rates of prescription and redemption before and during the waves of pandemic will be examined at two participating Hurley clinics. Prescription rates reflect provider-driven EMR orders, and redemption rates reflect patient-driven prescriptions submitted in that month to vendors in exchange for produce. Surge one of the pandemic will be defined as March 2020-June 2020; surge two will be defined as November 2020-February 2021. Additionally, change in clinic visit volume will be analyzed. ResultsWell-child visits decreased by 21% during the pandemic period. Preliminary results reveal prescription rate decreased from 74.9% the year before the pandemic (March 2019-February 2020) to 59.4% (p < 0.001) the year following the start of the pandemic (March 2020-February 2021). Redemption through Flint Fresh delivered produce boxes increased by 64.7%. Surge-specific time period analysis and redemption rate statistics are being finalized. ConclusionsRates of fruit and vegetable prescriptions significantly decreased during the pandemic, with a likely associated decrease in redemption rates. This is concerning as Flint’s pre-existing nutrition insecurity was exacerbated by the pandemic due to the concomitant economic crisis resulting from rise in unemployment and poverty. Efforts to improve rates should be considered including targeted outreach to patients who missed visits, enhanced telehealth prescribing, provider education, and promotion of COVID-safe home delivered produce boxes. Further analysis will examine impact of case surges and quality improvement strategies. Funding SourcesHurley.

The Role of Generic Price Look-Up Code in WIC Benefit Redemptions

One of the most significant recent changes in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is that the Healthy, Hunger-Free Kids Act of 2010 mandated the conversion of the program to an electronic benefit transfer (EBT) system by October 1, 2020. This mandate has led to some technical challenges and policy issues. Focusing on the adoption of a generic price look-up (PLU) code, an important EBT mechanism intended to facilitate the redemption of fresh produce, this research examines how different mapping approaches in using the generic PLU code are associated with WIC participants’ cash value benefit redemption. Using the redemption data of 121,021 Virginia WIC participants in 2015, the first year after the full implementation of the EBT system in Virginia, the authors identified three groups of WIC participants based on their exposure to the generic PLU code. Results show that WIC participants who had ever been exposed to the generic code tended to have a significantly higher fruit and vegetable redemption rate than those who had never experienced the generic code. The authors also conducted a qualitative study to provide insights regarding the potential mechanism underlying the hypothesized relationships. Relevant policy implications and future research directions are discussed.

Designing successful temporary loyalty programs: An exploratory study on retailer and country differences

Retailers increasingly adopt temporary loyalty programs (TLPs), in which consumers have limited time, often less than half a year, to save stamps and redeem highly discounted rewards. These programs often run alongside the retailers’ permanent loyalty programs in an attempt to increase customer engagement. Despite the growing popularity of TLPs, the literature on the topic remains limited. We address this gap by looking at the redemption rate, the industry’s primary success indicator, of almost 900 TLPs across a broad set of grocery retailers in 45 countries. We study the effects of four key design characteristics (the duration of the program, the discount offered, the spending requirement before an award can be redeemed, and the reward depth) on the redemption rate, and explore how these effects vary across a broad range of retailer and country characteristics. In doing so, we control for both a retailer’s potential self-selection into running a TLP and the potential endogeneity of the subsequent design choices. We derive a set of actionable results on how to design successful TLPs and show that high redemption rates are not only beneficial for the program operator and reward manufacturer, but also translate into higher sales and profit for the retailer.

A Mixed-Methods Examination of the Impact of the Partnerships to Improve Community Health Produce Prescription Initiative in Northeastern North Carolina.

To conduct a mixed-methods examination of the impact of the Partnerships to Improve Community Health produce prescription initiative in northeastern North Carolina. Quantitative surveys were conducted among participants before and after the distribution of produce prescription vouchers. Univariate statistics were used to describe the participant population, and paired t tests were used to examine change in fruit and vegetable intake. Qualitative, in-depth telephone interviews were conducted among participants, health educators, and food retailers and coded for themes. Eight health promotion programs, 2 food pantries, and 11 food retailers. In each health promotion program or food pantry, between 6 and 97 participants were enrolled. Produce prescription vouchers were distributed to participants and redeemed at local food retailers. An increase in local fruit and vegetable purchasing and consumption. Of the produce prescription participants who completed the baseline survey (n = 93), 86% were female, 64% were African American, and 68% were food insecure. The voucher redemption rate was 18%. The majority of participants indicated that they visit farmers' markets more now than before the produce prescription initiative, that shopping at the farmers' market made it easy to include more fresh produce in their family's diet, and that they tried a new farmers' market because of the produce prescription initiative. All health educators and food retailers who participated felt that the initiative benefited their program or operation and were willing to partner with the program again. While redemption rates were lower than anticipated, the produce prescription initiative had positive impacts on participants' local fruit and vegetable purchasing and consumption. Because of COVID-19, the initiative was not implemented until late in the North Carolina produce season. Moving forward, the program will start earlier and work with local food retailers to connect with their communities to increase redemption rates.

Design of win-win return policies for online retailers

Product returns cost retailers billions of dollars annually. We analyze return policies (RPs) with cash refunds in the presence of wardrobers. We then analyze RPs with store credit or gift cards (SC/GC) refunds. We also analyze two-option RPs in which consumers choose between cash and SC/GC refunds. We find that for cash-only RPs, the retailer uses price to attract consumers while using the refund fraction to discourage wardrobers. SC/GC can be a good alternative to cash when consumers have high valuation for SC/GC and some SC/GC are not redeemed. With high redemption rate, SC/GC can be a good alternative when consumers make hedonic purchases and the retailer has a reasonable profit margin. We also find that single-option RPs dominate two-option RPs when genuine consumers and wardrobers have the same valuation for SC/GC, and two-option RPs can dominate when the two consumer segments have heterogeneous valuation for SC/GC. When two-option RPs dominate, the retailer gives lenient SC/GC option to genuine consumers who have a high valuation for SC/GC, and uses the cash option to decrease the cost or increase the profit from wardrobers who have a low valuation for SC/GC for some ranges of problem parameters. Moreover, when consumers have continuous valuation for SC/GC, two-option RPs dominate single-option RPs in genuine-only consumer markets. With two-option RPs, the retailer uses cash to increase profit from consumers with a low valuation for SC/GC and uses SC/GC to increase profit from consumers with a high valuation for SC/GC.

Women, Infants, and Children Cash Value Benefit Redemption Choices in the Electronic Benefit Transfer Era.

This study aims to examine the relationship between cash value benefit (CVB) redemption outcomes in the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) across food processing types and socio-demographics. Cross-sectional and panel analyses. Virginia. 98,067 Virginia WIC households. CVB redemption rate. The predominant share of CVB redemption was for fresh produce (77.3%). Non-Hispanic whites and blacks redeemed a smaller share of fresh produce than Hispanic participants (P < .001). Non-Hispanic black WIC households have a significantly lower CVB redemption rate than non-Hispanic white WIC households (β = -.008, P < .001). Households with a child participant tend to have a higher redemption rate (β = .01, P < .001). The redemption rates of fruits and of vegetables were positively correlated with household size. Minority status and household size were significantly related to CVB redemptions among Virginia WIC participants.

Innovative Partnerships to Address Food Insecurity during the COVID-19 Pandemic: The Brighter Bites Produce Voucher Program.

The purpose of this communication is to describe the Brighter Bites produce voucher program, and its implementation and utilization across Brighter Bites families in four cities in the U.S., during the COVID-19 pandemic. The voucher program was implemented over nine weeks starting April 2020, with up to four USD 25 store-specific produce coupons sent bi-weekly to the homes of each participating Brighter Bites family (USD 100 total/family). Measures included type of produce purchased, amount of voucher that was used, number of vouchers distributed and redeemed by families, and a post-program participant satisfaction survey. Descriptive statistics, including count, frequency, and percent, were computed, both overall and stratified by city. During this time, Brighter Bites distributed a total of over 43,982 vouchers to 12,482 low-income families, with a redemption rate of 60% (at least one voucher redeemed) across all cities. During times of crisis, non-profit–for-profit partnerships, such as the one between Brighter Bites and the grocery retail industry, are feasible, and successful in providing produce to families in need.

Dynamic pricing and coupon promotion strategies in a dual-channel supply chain based on differential game

PurposeThis paper investigates a dual-channel supply chain in which a manufacturer offers coupons in the online channel and the retailer in the offline channel. The optimal pricing and coupon promotion policies are explored, and the brand image under different promotion scenarios is studied.Design/methodology/approachThree differential game models, namely no coupon is offered, coupons offered by the manufacturer and coupons offered by the retailer, are constructed.FindingsThe results show that the manufacturer and retailer intend to conduct coupon promotions under a large coupon redemption rate. Coupon promotion derives a higher price and profit for the issuers, and the manufacturer can free-ride on the retailer's coupon promotion. The retailer's profit in the retailer-promotion scenario may be lower than that in the manufacturer-promotion scenario in some special conditions. Besides, price, coupon face value, brand image and profit increase over time. After multiple cycles game, the operational strategy evolves to an optimal equilibrium status.Originality/valueThis paper provides guidance and advice for dual-channel supply enterprises to implement joint pricing and coupon promotion strategies under multiple sales seasons.

App Usage Associated With Full Redemption of WIC Food Benefits: A Propensity Score Approach

ObjectiveTo examine the relationship between WICShopper application (app) usage and full redemption of Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) food benefits. DesignA cross-sectional study. SettingWest Virginia WIC program. ParticipantsA total of 23,050 West Virginia WIC households in 2019. Main Outcome MeasuresFull redemptions were defined as the redemption rate of ≥ 90% for a given food benefit. AnalysisApp/non-app users were defined as households with someone using/not using the WICShopper app. Multivariate logistic regressions were applied. To address the potential self-selection bias in app usage, the propensity score (PS) of app usage was estimated. The regressions were rerun with the balanced sample by matching the PS. ResultsWith PS matching, the prevalence of full redemption at the household level was 7.2% for app users vs 4.7% for nonapp users (odds ratio, 1.64; 95% confidence interval, 1.40–1.92; P < 0.001). App users had a higher prevalence of full redemption in most food categories, even with PS matching. Conclusions and ImplicationsUse of the WICShopper app was associated with a higher prevalence of full redemptions in most food benefits after controlling the self-selection bias.

Rebate Strategy Selection and Channel Coordination of Competing Two-Echelon Supply Chains

Rebate has long been a crucial tool that has attracted researchers from a diverse range of fields including marketing and supply chain management. When a manufacturer uses a retailer for reaching end customers, the rebate strategy undertakes an additional dimension. Here we show whether the two rebate strategies, manufacturer rebate and channel rebate, can be the optimal choice for the manufacturer and the retailer. And we aim at full coordination with rebate. Game theory is exploited to identify the equilibrium rebate decisions, which are fully characterized with two rebate strategies considering rebate sensitivity. Furthermore, we demonstrate how the decisions depend on parameters, such as market size, rebate redemption rate, and competition intensity in monopoly and duopoly supply chain systems. Our work also coordinates the supply chain with two coordination policies and examines if they can achieve full coordination. Counterintuitive findings suggest that the channel rebate with sensitivity and discrimination is not effective and the manufacturer rebate is the unique optimal option. Besides, the coordination can be realized with a centralized rebate in monopoly setting when the manufacturer forgoes her own interest. Then full coordination can be achieved in duopoly setting with a new coordination policy, rebate combination, given the redemption rate for the channel rebate is lower compared with the manufacturer rebate. Managerial insights are suggested that offering rebates with discrimination can have significant inventory and coordination policy implications and can lead to a double win under a well-controlled redemption rate.

Examining m-coupon redemption intention among consumers: A moderated moderated-mediation and conditional model

The low redemption rate of coupons presents a challenge for marketers and scholars. While numerous studies have endorsed the potential of mobile (m)-coupons, not much is known about the consumer’s intention to redeem such coupons. This study uses Value-based Adoption Model (VAM) to explain the redemption intention of m-coupons among coupon redeemers. Apart from studying coupon proneness and perceived convenience, this study empirically examined perceived privacy risk (PPR) (first moderator) and repeat usage behavior (second moderator) for m-coupon redemption intention. One of the key findings from 637 m-coupon users suggest that high repeat usage behavior of m-coupon redemption diminishes the influence of PPR. This suggest that marketers should offer a seamless end to end customer journey to increase m-coupon redemption. The other managerial implications have also been highlighted in the study.

Customer‐centric category selection for mobile and print promotions in loyalty reward programs

AbstractIn their loyalty reward programs, large retailers adopt category‐specific targeted promotions as an effective means to increase shoppers' basket values. However, neither the literature nor observed marketing practice provides category selection methods that maximize the promotion's profitability. Hence, we provide a predictive customer‐centric category selection approach based on the return on marketing investment measure that accommodates both fixed and variable promotion costs, captures cherry‐picking effects, and encompasses the retailer's entire category assortment. We use a real‐world promotional data set from a leading German retailer to show that our approach predicts customer responses to these promotions with high out‐of‐sample accuracy tested over time and also across promotion frequencies. We find that the most promising categories in mobile promotions maximize cross‐category profits to curtail cherry‐picking and boost the sales of nonpromoted items—that is, the profitability‐driving part of the profit uplift. In contrast, the different cost structure of print promotions requires that categories achieve a high (but not too high) redemption rate, as cross‐category profit declines, in order to recoup customer contacting costs. Our benchmark analysis reveals that current marketing practice fails to hit the profitability functions' “sweet spot” and can even work against the retailer by producing negative returns.

How Does Omnichannel Marketing Enable Businesses to Cope with COVID-19? Evidence from a Large-Scale Field Experiment

In light of the global Covid-19 pandemic and its profoundly negative impact on offline businesses, this study aims to understand how firms can leverage online-to-offline (O2O) coupons to maintain and even grow their offline businesses despite constraints imposed by the pandemic. We use unique data from a large-scale field experiment with 850,000 distributed coupons across about 280 cities, as well as two online follow-up studies. We evaluate how the local severity of the pandemic impacts the effectiveness of O2O coupons and explore the underlying mechanisms of the pandemic's effects on consumer coupon usage decisions. The results show that the coupon claim rate is positively influenced by pandemic severity, and this effect is driven by consumers' perceived deprivation. Conversely, pandemic severity has a negative impact on the coupon redemption rate, and this effect is mediated by consumers' perceived risk. More importantly, for areas in which the pandemic is more severe, both the coupon claim and redemption rates are significantly higher when the coupon is distributed through social sharing (vs. directly from the business), and the coupon claim rate is higher when the claiming procedure involves gamification than when it does not. The paper concludes with theoretical and managerial implications.

Nebraska Double Up Food Bucks Increases Purchases of Fresh Fruits and Vegetables Among SNAP Users

Abstract Objectives Nebraska Double Up Food Bucks (NDUFB) is an incentive program intended to increase the purchase of fresh fruits and vegetables (F&amp;V) by Supplemental Nutrition Assistance Program (SNAP) recipients. The objective of the NDUFB program is to provide evidence and best practices for implementing a sustainable Policy, System, and Environmental (PSE) program to improve food security and diet quality among SNAP recipients. Methods Program site selection was dependent on the availability of funding, organizational capacity, and technology levels (POS machine) of the business, geographical location, and the capacity of local Extension staff in the area. At participating sites, SNAP recipients use the program by purchasing qualifying items with their federal benefits (EBT card) to earn NDUFB in equal amounts (in $2 increments) up to $20 per day. NDUFB can be used to purchase fresh fruits, vegetables, and herbs (F&amp;V) at any participating site that day or any day in the future during site's normal business hours. Evaluation includes a mixed methods approach including customer, vendor and manager surveys, tracking purchases (customer logs and receipts) and redemptions (bank records) as well as qualitative feedback and satisfaction. Intervention took place June 2017- December 2019. Results On average, 74% of NDUFB customer survey respondents (n = 96) self-identified as food insecure. There were positive and significant (P &amp;lt; 0.05) correlations between how long respondents reported using NDUFB and the following: ease of using NDUFB to buy F&amp;V and consumption of green leafy or lettuce salads, non-fried kinds of potatoes, and other vegetables. In total, SNAP recipients used NDUFB to purchase over $40,000 worth of F&amp;V. This dollar amount is on top of the money they spent on F&amp;V ($67,052) to earn NDUFB. All together, the program contributed to over $107,000 worth of F&amp;V spending among 1342 families. Redemption rate for NDUFB is 80%, an industry leader in nutrition incentive programs. Conclusions The primary outcomes of the study include increased purchases of fresh fruits and vegetables, with an emphasis on locally grown produce among SNAP recipients. In addition, we show an increased use of the program by customers and retailers each year. Funding Sources Children's Hospital &amp; Medical Center, CHI Health, SNAP-Ed, USDA NIFA.

Coupon promotion and its two-stage price intervention on dual-channel supply chain

This paper explores a dual-channel supply chain under which manufacturers and retailers issue coupons in a two-stage promotion process for market size and profits. We attempt to investigate the role of coupons on pricing and channel competition by introducing a game model that includes three coupon issuing patterns: the manufacturer issuing, the retailer issuing, and co-issuing. Additionally, analysis and comparison of the strategies between different coupon issuing patterns are performed through an analytical approach and numerical study. Some new insights are as follows: The distribution of coupons increases the issuing channel’s price but decreases the competing channel’s price. The retailer's coupon promotion has a positive spillover effect on the manufacturer, while the manufacturer's coupon promotion may reduce the profit of the retailer. If the manufacturer offers coupons in the online channel, the best strategy for the retailer is to distribute coupons. The manufacturer owns channel advantage and obtains larger promotional effects when the manufacturer and retailer offer coupons simultaneously. The distribution of coupons does not absolutely increase the issuer’s profits but depends on the price sensitivity and redemption rate of coupons as well as competitor’s strategies. A bilateral revenue sharing contract can coordinate the dual-channel supply chain, and the retailer is more willing to reach the contract.