The use of coupons delivered by mobile phone, so-called “m-coupons,” is growing rapidly. In this study, the authors analyze consumer response to m-coupons for a two-year trial at a large shopping mall. Approximately 8,500 people were recruited to a panel and received three text-message m-coupons whenever they “swiped” their mobile phone at the mall entrances, with downstream redemption recorded. Almost 144,000 m-coupons were delivered during the trial, representing 38 stores that supplied 134 different coupons. The authors find that an important feature of m-coupons is where and when they are delivered, with location and time of delivery significantly influencing redemption. How long the m-coupons are valid (expiry length) is also important because redemption times for m-coupons are much shorter than for traditional coupons. This finding suggests that their expiration length should be shortened to help signal time urgency. Nevertheless, traditional coupon features, such as face value, still dominate m-coupon effectiveness, as does the product type, with snack food coupons being particularly effective.
AggarwalAggarwal and VaidyanathanRajiv (2002), “Use It or Lose It: Purchase Acceleration Effects of Time-Limited Promotions,”Journal of Consumer Behavior, 2 (4), 393–403.
3.
AnimeshAnimesh, ViswanathanSiva, and AgarwalRitu (2011), “Competing ‘Creatively' in Sponsored Search Markets: The Effect of Rank, Differentiation Strategy, and Competition on Performance,”Information Systems Research, 22 (1), 153–69.
4.
AnsariAnsari and MelaCarl F. (2003), “E-Customization,”Journal of Marketing Research, 40 (May), 131–45.
5.
AshfordJ.R. and SowdenR.R. (1970), “Multi-Variate Probit Analysis,”Biometrics, 26 (3), 535–46.
6.
BanerjeeBanerjee and YanceyScott (2010), “Enhancing Mobile Coupon Redemption in Fast Food Campaigns,”Journal of Research in Interactive Marketing, 4 (2), 97–110.
7.
BartYakov, StephenAndrew T., and SarvaryMiklos (2014), “Which Products Are Best Suited to Mobile Advertising? A Field Study of Mobile Display Advertising Effects on Consumer Attitudes and Intentions,”Journal of Marketing Research, 51 (June), 270–85.
8.
BarwiseBarwise and StrongColin (2002), “Permission-Based Mobile Advertising,”Journal of Interactive Marketing, 16 (1), 14–24.
9.
BawaBawa and ShoemakerRobert W. (1987), “The Coupon-Prone Consumer: Some Findings Based on Purchase Behavior Across Product Classes,”Journal of Marketing, 51 (October), 99–110.
10.
CheHai, ChenXinlei (Jack), and ChenYuxin (2012), “Investigating Effects of Out-of-Stock on Consumer Stockkeeping Unit Choice,”Journal of Marketing Research, 49 (August), 502–513.
11.
ChibChib and GreenbergEdward (1998), “Analysis of Multivariate Probit Models,”Biometrika, 85 (2), 347–61.
12.
Chiou-WeiSong-Zan and InmanJ. Jeffrey (2008), “Do Shoppers Like Electronic Coupons? A Panel Data Analysis,”Journal of Retailing, 84 (3), 297–307.
13.
DanaherPeter J. (1995), “What Happens to Television Ratings During Commercial Breaks?”Journal of Advertising Research, 35 (1), 37–47.
14.
DanaherPeter J. (2002), “Optimal Pricing of Subscription Services: Analysis of a Market Experiment,”Marketing Science, 21 (2), 119–38.
15.
DanaherPeter J., LeeJanghyuk, and KerbacheLaoucine (2010), “Optimal Internet Media Selection,”Marketing Science, 29 (2), 336–47.
16.
De ReyckBert and DegraeveZeger (2003), “Broadcast Scheduling for Mobile Advertising,”Operations Research, 51 (4), 509–517.
17.
DiamondWilliam D. (1992), “Just What Is a ‘Dollar's Worth'? Consumer Reactions to Price Discounts vs. Extra Product Promotions,”Journal of Retailing, 68 (3), 254–70.
18.
DickingerDickinger and KleijnenMirella (2008), “Coupons Going Wireless: Determinants of Consumer Intentions to Redeem Mobile Coupons,”Journal of Interactive Marketing, 22 (3), 23–39.
FaderPeter S., HardieBruce G.S., and LeeKa Lok (2005), “Counting Your Customers the Easy Way: An Alternative to the Pareto/NBD Model,”Marketing Science, 24 (2), 275–84.
25.
FongNathan, FangZheng, and LuoXueming (2015), “Geo-Conquesting: Competitive Locational Targeting of Mobile Promotions,”Journal of Marketing Research, (published electronically February 13, 2015), [DOI: 10.1509/jmr.14.0229].
26.
GhoseGhose and HanSang Pil (2011), “An Empirical Analysis of User Content Generation and Usage Behavior on the Mobile Internet,”Management Science, 57 (9), 1671–91.
27.
GreeneWilliam H. (1998), “Gender Economics Courses in Liberal Arts Colleges: Further Results,”Journal of Economic Education, 29 (4), 291–300.
28.
HeckmanJames J. and WillisRobert J. (1975), “Estimation of a Stochastic Model of Reproduction: An Econometric Approach,” in Household Production and Consumption: NBER Studies in Income and Wealth, Vol. 40, TerleckyjNestor E., ed. New York: Columbia University Press, 99–145.
29.
HuiSam K., InmanJ. Jeffrey, HuangYanliu, and SuherJacob (2013), “The Effect of In-Store Travel Distance on Unplanned Spending: Applications to Mobile Promotion Strategies,”Journal of Marketing, 77 (March), 1–16.
30.
InmanJeffrey J. and McAlisterLeigh (1994), “Do Coupon Expiration Dates Affect Consumer Behavior?”Journal of Marketing Research, 31 (3), 423–28.
LambrectLambrect and TuckerCatherine (2013), “When Does Retargeting Work? Information Specificity in Online Advertising,”Journal of Marketing Research, 50 (October), 561–76.
ManchandaPuneet, RossiPeter E., and ChintaguntaPradeep K. (2004), “Response Modeling with Nonrandom Marketing-Mix Variables,”Journal of Marketing Research, 41 (November), 467–78.
35.
McCullochRobert E. and RossiPeter E. (1994), “Exact Likelihood Analysis of the Multinomial Probit Model,”Journal of Econometrics, 64 (1/2), 207–240.
MolitorDominik, ReichartPhilipp, and SpannMartin (2013), “Location-Based Advertising: What Is the Value of Physical Distance on the Mobile Internet?” working paper, Ludwig Maximilian University of Munich.
38.
MusalemAndrés, BradlowEric T., and RajuJagmohan S. (2008), “Who's Got the Coupon? Estimating Consumer Preferences and Coupon Usage from Aggregate Information,”Journal of Marketing Research, 45 (December), 715–30.
39.
NeslinScott A. (1990), “A Market Response Model for Coupon Promotions,”Marketing Science, 9 (2), 125–45.
40.
PetrinPetrin and TrainKenneth (2010), “A Control Function Approach to Endogeneity in Consumer Choice Models,”Journal of Marketing Research, 47 (February), 3–13.
41.
RaghubirAndrew (2004), “Coupons in Context; Discounting Prices or Decreasing Profits,”Journal of Retailing, 80 (1), 1–12.
42.
ReibsteinDavid J. and TraverPhillis A. (1982), “Factors Affecting Coupon Redemption Rates,”Journal of Marketing, 46 (October), 102–113.
43.
RossiPeter E., McCullochRobert E., and AllenbyGreg M. (1996), “The Value of Purchase History Data in Target Marketing,”Marketing Science, 15 (4), 321–40.
ShankarVenkatesh, VenkateshAlladi, HofackerCharles, and NaikPrasad (2010), “Mobile Marketing in the Retailing Environment: Current Insights and Future Research Avenues,”Journal of Interactive Marketing, 24 (2), 111–20.
46.
ShoemakerRobert W. and TibrewalaVikas (1985), “Relating Coupon Redemption Rates to Past Purchasing of the Brand,”Journal of Advertising Research, 25 (5), 40–47.
StephenAndrew T. and ToubiaOlivier (2010), “Deriving Value from Social Commerce Networks,”Journal of Marketing Research, 47 (April), 215–28.
50.
SwaminathanSwaminathan and BawaKapil (2005), “Category-Specific Coupon Proneness: The Impact of Individual Characterisitics and Category-Specific Variables,”Journal of Retailing, 81 (1), 205–214.
51.
TerzaJoseph V., BasuAnirban, and RathouzPaul J. (2008), “Two-Stage Residual Inclusion Estimation: Addressing Endogeneity in Health Econometric Modeling,”Journal of Health Economics, 27 (3), 531–43.
52.
WooldridgeJeffrey M. (2010), Econometric Analysis of Cross Section and Panel Data, 2nd ed. Cambridge, MA: MIT Press.
53.
WrayWray and PlanteDaniel (2011), “Mobile Advertising Engine for Centralized Mobile Coupon Delivery,”International Journal of Management and Marketing Research, 4 (1), 75–85.
54.
ZhangZhang and WedelMichel (2009), “The Effectiveness of Customized Promotions in Online and Offline Stores,”Journal of Marketing Research, 46 (April), 190–206.
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
