Minding your Ts and Cs: How do rate fences affect restaurant deal promotion outcomes?
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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.
Keywordsrevenue management pricing daily deals rate fences restaurants
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