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The influence of coupon duration on consumers’ redemption behavior and brand profitability

Author

Listed:
  • Zhang, Zelin
  • Ma, Minghui
  • Popkowski Leszczyc, Peter T.L.
  • Zhuang, Hejun

Abstract

This research proposes an analytical model of the joint optimization of coupon face value and duration together with the product price, and determines the impact of coupon design on consumers’ redemption behavior. A model of rational forward-looking consumers’ redemption behavior is derived that incorporates forgetting (to redeem) and stochastic redemption costs.

Suggested Citation

  • Zhang, Zelin & Ma, Minghui & Popkowski Leszczyc, Peter T.L. & Zhuang, Hejun, 2020. "The influence of coupon duration on consumers’ redemption behavior and brand profitability," European Journal of Operational Research, Elsevier, vol. 281(1), pages 114-128.
    • Handle: RePEc:eee:ejores:v:281:y:2020:i:1:p:114-128
    DOI: 10.1016/j.ejor.2019.08.029
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    Citations

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    Cited by:

    1. Li, Zonghuo & Yang, Wensheng & Jin, Hyun Seung & Wang, Di, 2021. "Omnichannel retailing operations with coupon promotions," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    2. Hu, Li & Zhang, Mengwei & Wen, Xin, 2023. "Optimal distribution strategy of coupons on e-commerce platforms: Sufficient or scarce?," International Journal of Production Economics, Elsevier, vol. 266(C).
    3. Yingdong Tian & Wensheng Yang & Kun Wen & Dawei Zhang, 2023. "Who is better for single and double coupon promotion? Comparison from dual‐channel and two‐period," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2079-2093, June.
    4. Li, Zonghuo & Guan, Xu & Mei, Wanxia, 2023. "Coupon promotion and its cross-channel effect in omnichannel retailing industry: A time-sensitive strategy," International Journal of Production Economics, Elsevier, vol. 258(C).
    5. Ram, Pappu Kalyan & Pandey, Neeraj & Persis, Jinil, 2024. "Modeling social coupon redemption decisions of consumers in food industry: A machine learning perspective," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    6. Hongjun Lv, 2021. "Who benefits when coupons are issued by a duopoly from an e‐market?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1656-1664, October.
    7. Debora Dhanya Amarnath & Uma Pricilda Jaidev, 2021. "Toward an integrated model of consumer reactance: a literature analysis," Management Review Quarterly, Springer, vol. 71(1), pages 41-90, February.

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