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Minding your Ts and Cs: How do rate fences affect restaurant deal promotion outcomes?

Frederick Ng (), Claire Cui and Julie Harrison
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Frederick Ng: The University of Auckland
Claire Cui: The University of Auckland
Julie Harrison: The University of Auckland

Journal of Revenue and Pricing Management, 2018, vol. 17, issue 3, 166-181

Abstract: Abstract Daily deals are a web channel where suppliers offer promotions, with deals varying in their terms and conditions (Ts and Cs), their popularity with customers, and the revenue they generate. Using data from 200 deals from the United States and New Zealand, we examine the terms and conditions commonly used by restaurants and their association with promotion outcomes. While restrictions risk reducing a deal’s appeal, shorter redemption periods, new customer restrictions, and time restrictions were found to improve outcomes in particular settings. Booking restrictions and menu restrictions were found to have negative impacts on deal outcomes. Findings offer practical guidance for restaurants on how to configure deals for a successful campaign.

Keywords: revenue management; pricing; daily deals; rate fences; restaurants (search for similar items in EconPapers)
Date: 2018
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