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Which Categories and Brands to Promote with Targeted Coupons to Reward and to Develop Customers in Supermarkets

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  • Osuna, Ignacio
  • González, Jorge
  • Capizzani, Mario

Abstract

This study explores the role of category and brand characteristics in the effectiveness of two types of targeted coupons aimed at achieving a retailer's specific goals. In one case, the retailer issues the coupon to reward customers offering discounts in brands they already buy. In the other case, the retailer seeks to develop customers by issuing coupons in categories where they do not buy branded alternatives at the retail chain.

Suggested Citation

  • Osuna, Ignacio & González, Jorge & Capizzani, Mario, 2016. "Which Categories and Brands to Promote with Targeted Coupons to Reward and to Develop Customers in Supermarkets," Journal of Retailing, Elsevier, vol. 92(2), pages 236-251.
    • Handle: RePEc:eee:jouret:v:92:y:2016:i:2:p:236-251
    DOI: 10.1016/j.jretai.2015.12.002
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    References listed on IDEAS

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    2. Neeraj Pandey & Vaibhav Maheshwari, 2017. "Four decades of coupon research in pricing: Evolution, development, and practice," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(4), pages 397-416, August.
    3. Montazeri, Samaneh & Tamaddoni, Ali & Stakhovych, Stanislav & Ewing, Michael, 2021. "Empirical decomposition of customer responses to discount coupons in online FMCG retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    4. Gabel, Sebastian & Guhl, Daniel, 2022. "Comparing the effectiveness of rewards and individually targeted coupons in loyalty programs," Journal of Retailing, Elsevier, vol. 98(3), pages 395-411.
    5. 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).
    6. 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).
    7. Woo, Hongjoo & Chung, Angie & Richey, Robert Glenn & Hopkins, Christopher & Lee, Kangbok, 2022. "Product-flyer location and type of product categories in retailing," Journal of Business Research, Elsevier, vol. 138(C), pages 146-160.
    8. 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.
    9. Moon, Ilkyeong & Xu, Jie & Feng, Xuehao & Ruan, Xiao, 2020. "Cooperative sales promotion with a point-sharing policy: Advantages and limitations," Omega, Elsevier, vol. 94(C).
    10. Thomas Reutterer & Kurt Hornik & Nicolas March & Kathrin Gruber, 2017. "A data mining framework for targeted category promotions," Journal of Business Economics, Springer, vol. 87(3), pages 337-358, April.
    11. Akram, Umair & Ansari, Aisha Rehman & Fu, Guoqun & Junaid, Muhammad, 2020. "Feeling hungry? let's order through mobile! examining the fast food mobile commerce in China," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    12. Boto-García, David & Alvarez, Antonio, 2020. "Modelling the effect of store flyers on supermarket sales: An application to olive oil demand," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    13. Villanova, Daniel & Bodapati, Anand V. & Puccinelli, Nancy M. & Tsiros, Michael & Goodstein, Ronald C. & Kushwaha, Tarun & Suri, Rajneesh & Ho, Henry & Brandon, Renee & Hatfield, Cheryl, 2021. "Retailer Marketing Communications in the Digital Age: Getting the Right Message to the Right Shopper at the Right Time," Journal of Retailing, Elsevier, vol. 97(1), pages 116-132.
    14. Amelie A. Hecht & Crystal L. Perez & Michele Polascek & Anne N. Thorndike & Rebecca L. Franckle & Alyssa J. Moran, 2020. "Influence of Food and Beverage Companies on Retailer Marketing Strategies and Consumer Behavior," IJERPH, MDPI, vol. 17(20), pages 1-34, October.
    15. von Mutius, Bernhard & Huchzermeier, Arnd, 2021. "Customized Targeting Strategies for Category Coupons to Maximize CLV and Minimize Cost," Journal of Retailing, Elsevier, vol. 97(4), pages 764-779.

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