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The effects of constrained mobile coupons in the mobile channel

Author

Listed:
  • Zhang, Hongchao
  • Yu, Yu
  • Qin, Yinggao

Abstract

Despite the popularity of constrained mobile coupons in recent years, little research has examined their effectiveness. This paper presents a hidden Markov model (HMM) framework to examine the short-term and long-term effectiveness of minimum-threshold coupons (i.e., threshold-constrained coupons) and limited-time, low-price coupons (i.e., time-constrained coupons). We find that both of them boost consumers' purchase probability during the coupon redemption period. Furthermore, minimum-threshold coupons not only increase consumers’ purchase quantity during the redemption period, but also improve the customer-firm relationship beyond the redemption period. By contrast, limited-time, low-price coupons strengthen the customer-firm relationship only for consumers in a higher relationship state but not a lower relationship state. This study can help marketers allocate limited marketing resources effectively, strengthen and manage the relationship between consumers and firms, and increase product sales.

Suggested Citation

  • Zhang, Hongchao & Yu, Yu & Qin, Yinggao, 2023. "The effects of constrained mobile coupons in the mobile channel," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:joreco:v:75:y:2023:i:c:s096969892300293x
    DOI: 10.1016/j.jretconser.2023.103542
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    References listed on IDEAS

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