Scanning for discounts: examining the redemption of competing mobile coupons

Paul Mills () and César Zamudio ()
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Paul Mills: Cleveland State University
César Zamudio: Kent State University

Journal of the Academy of Marketing Science, 2018, vol. 46, issue 5, No 10, 964-982

Abstract: 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.

Keywords: Mobile coupons; Redemption; Competing coupons; Reference price; Range theory (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (8)

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DOI: 10.1007/s11747-018-0592-7

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