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Journal of the Academy of Marketing Science

, Volume 46, Issue 5, pp 964–982 | Cite as

Scanning for discounts: examining the redemption of competing mobile coupons

  • Paul Mills
  • César Zamudio
Original Empirical Research

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 

Notes

Acknowledgements

The authors wish to thank the Marketing Science Institute for their financial support during the early stages of this project, and Jim Wilson, founder of Insight Market Data, for developing the mobile coupon app used in this study.

Supplementary material

11747_2018_592_MOESM1_ESM.docx (137 kb)
ESM 1 (DOCX 137 kb)

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Copyright information

© Academy of Marketing Science 2018

Authors and Affiliations

  1. 1.Monte Ahuja College of Business, Department of MarketingCleveland State UniversityClevelandUSA
  2. 2.College of Business Administration, Department of Marketing and EntrepreneurshipKent State UniversityKentUSA

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