IDEAS home Printed from https://ideas.repec.org/a/spr/elcore/v22y2022i2d10.1007_s10660-020-09405-4.html
   My bibliography  Save this article

Targeted reminders of electronic coupons: using predictive analytics to facilitate coupon marketing

Author

Listed:
  • Li Li

    (Nanjing University of Science and Technology)

  • Xiaotong Li

    (University of Alabama in Huntsville)

  • Wenmin Qi

    (Nanjing University of Science and Technology)

  • Yue Zhang

    (California State University, Northridge)

  • Wensheng Yang

    (Nanjing University of Science and Technology)

Abstract

Electronic coupon (e-coupon) is one of the most important marketing tools in B2C e-commerce. To improve the e-coupon redemption rate and reduce marketing costs, it is crucial to retarget customers who have received e-coupons and have higher propensity to redeem their coupons. Using log data and transactional data to extract the features of past purchase behavior, past coupon redemption behavior and browsing behavior during coupon validity period, we investigate the factors influencing customers’ propensity for e-coupon redemption. Our results show that almost all the variables used in our analysis (except the visit time) affect consumers’ coupon redemption propensity. Our study can help companies develop promotional strategies that better retarget those customers who are more likely to respond to coupon marketing. It also highlights the potential of using predictive analytics to enhance marketing effectiveness in the era of big data.

Suggested Citation

  • Li Li & Xiaotong Li & Wenmin Qi & Yue Zhang & Wensheng Yang, 2022. "Targeted reminders of electronic coupons: using predictive analytics to facilitate coupon marketing," Electronic Commerce Research, Springer, vol. 22(2), pages 321-350, June.
    • Handle: RePEc:spr:elcore:v:22:y:2022:i:2:d:10.1007_s10660-020-09405-4
    DOI: 10.1007/s10660-020-09405-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10660-020-09405-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10660-020-09405-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Peter E. Rossi & Robert E. McCulloch & Greg M. Allenby, 1996. "The Value of Purchase History Data in Target Marketing," Marketing Science, INFORMS, vol. 15(4), pages 321-340.
    2. (Catherine) Zhang, Jie & Savage, Scott J. & Chen, Yongmin, 2015. "Consumer uncertainty and price discrimination through online coupons: An empirical study of restaurants in Shanghai," Information Economics and Policy, Elsevier, vol. 33(C), pages 43-55.
    3. Haughey, John C., 1997. "The Loyalty Effect," Business Ethics Quarterly, Cambridge University Press, vol. 7(4), pages 145-150, October.
    4. Ming Zeng & Hancheng Cao & Min Chen & Yong Li, 2019. "User behaviour modeling, recommendations, and purchase prediction during shopping festivals," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(2), pages 263-274, June.
    5. Johnson, Eric J & Hershey, John & Meszaros, Jacqueline & Kunreuther, Howard, 1993. "Framing, Probability Distortions, and Insurance Decisions," Journal of Risk and Uncertainty, Springer, vol. 7(1), pages 35-51, August.
    6. Hariharan, Vijay Ganesh & Talukdar, Debabrata & Kwon, Changhyun, 2015. "Optimal targeting of advertisement for new products with multiple consumer segments," International Journal of Research in Marketing, Elsevier, vol. 32(3), pages 263-271.
    7. C. Ranganathan & Sanjeev Jha, 2007. "Examining Online Purchase Intentions in B2C E-Commerce: Testing an Integrated Model," Information Resources Management Journal (IRMJ), IGI Global, vol. 20(4), pages 48-64, October.
    8. Bucklin, Randolph E. & Sismeiro, Catarina, 2009. "Click Here for Internet Insight: Advances in Clickstream Data Analysis in Marketing," Journal of Interactive Marketing, Elsevier, vol. 23(1), pages 35-48.
    9. Vidyanand Choudhary & Shivendu Shivendu, 2017. "Targeted Couponing in Online Auctions," Information Systems Research, INFORMS, vol. 28(3), pages 490-510, September.
    10. Stefan Lessmann & Kristof Coussement & Koen W. de Bock & Johannes Haupt, 2019. "Targeting customers for profit: An ensemble learning framework to support marketing decision-making," Post-Print hal-02275955, HAL.
    11. Botzen, W.J. Wouter & de Boer, Joop & Terpstra, Teun, 2013. "Framing of risk and preferences for annual and multi-year flood insurance," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 357-375.
    12. Wesley R. Hartmann, 2010. "Demand Estimation with Social Interactions and the Implications for Targeted Marketing," Marketing Science, INFORMS, vol. 29(4), pages 585-601, 07-08.
    13. Imke Reimers & Claire (Chunying) Xie, 2019. "Do Coupons Expand or Cannibalize Revenue? Evidence from an e-Market," Management Science, INFORMS, vol. 65(1), pages 286-300, January.
    14. Chiou-Wei, Song-Zan & Inman, J. Jeffrey, 2008. "Do Shoppers Like Electronic Coupons?," Journal of Retailing, Elsevier, vol. 84(3), pages 297-307.
    15. Khajehzadeh, Saman & Oppewal, Harmen & Tojib, Dewi, 2014. "Consumer responses to mobile coupons: The roles of shopping motivation and regulatory fit," Journal of Business Research, Elsevier, vol. 67(11), pages 2447-2455.
    16. Jonq-Ying Lee & Mark G. Brown, 1985. "Coupon Redemption and the Demand for Frozen Concentrated Orange Juice: A Switching Regression Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 647-653.
    17. Paul Mills & César Zamudio, 2018. "Scanning for discounts: examining the redemption of competing mobile coupons," Journal of the Academy of Marketing Science, Springer, vol. 46(5), pages 964-982, September.
    18. Jean-Noël Kapferer & Gilles Laurent, 1985. "Consumers Involvement Profiles: New Empirical Result," Post-Print hal-00786784, HAL.
    19. Gilles Laurent & Jean-Noël Kapferer, 1985. "Consumer Involvements Profiles: New Empirical Result," Post-Print hal-00820493, HAL.
    20. Garretson, Judith A. & Burton, Scot, 2003. "Highly Coupon and Sale Prone Consumers: Benefits Beyond Price Savings," Journal of Advertising Research, Cambridge University Press, vol. 43(2), pages 162-172, June.
    21. Chakravarthi Narasimhan, 1984. "A Price Discrimination Theory of Coupons," Marketing Science, INFORMS, vol. 3(2), pages 128-147.
    22. Bagozzi, Richard P & Baumgartner, Hans & Yi, Youjae, 1992. "State versus Action Orientation and the Theory of Reasoned Action: An Application to Coupon Usage," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(4), pages 505-518, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Noble, Stephanie M. & Lee, Kang Bok & Zaretzki, Russell & Autry, Chad, 2017. "Coupon clipping by impoverished consumers: Linking demographics, basket size, and coupon redemption rates," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 553-571.
    2. Chiou-Wei, Song-Zan & Inman, J. Jeffrey, 2008. "Do Shoppers Like Electronic Coupons?," Journal of Retailing, Elsevier, vol. 84(3), pages 297-307.
    3. Barat, Somjit & Amos, Clinton & Paswan, Audhesh & Holmes, Gary, 2013. "An exploratory investigation into how socioeconomic attributes influence coupons redeeming intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 20(2), pages 240-247.
    4. Navdeep S. Sahni & Dan Zou & Pradeep K. Chintagunta, 2017. "Do Targeted Discount Offers Serve as Advertising? Evidence from 70 Field Experiments," Management Science, INFORMS, vol. 63(8), pages 2688-2705, August.
    5. Lorenz Graf-Vlachy & Tarun Goyal & Yannick Ouardi & Andreas König, 2022. "The politics of piracy: political ideology and the usage of pirated online media," Information Technology and Management, Springer, vol. 23(1), pages 51-63, March.
    6. B. P. S. Murthi & Sumit Sarkar, 2003. "The Role of the Management Sciences in Research on Personalization," Management Science, INFORMS, vol. 49(10), pages 1344-1362, October.
    7. Demetrios Vakratsas & Frank M. Bass, 2002. "A segment-level hazard approach to studying household purchase timing decisions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(1), pages 49-59.
    8. Souiden, Nizar & Chaouali, Walid & Baccouche, Mona, 2019. "Consumers’ attitude and adoption of location-based coupons: The case of the retail fast food sector," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 116-132.
    9. 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).
    10. Richard J. Vyn & Getu Hailu, 2015. "Discount Usage and Price Discrimination for Pork Products in Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(4), pages 449-474, December.
    11. Singh, Sonika & Swait, Joffre, 2017. "Channels for search and purchase: Does mobile Internet matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 123-134.
    12. Qiao Liu & Qiaowei Shen & Zhenghua Li & Shu Chen, 2021. "Stimulating Consumption at Low Budget: Evidence from a Large-Scale Policy Experiment Amid the COVID-19 Pandemic," Management Science, INFORMS, vol. 67(12), pages 7291-7307, December.
    13. 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).
    14. Sridhar Narayanan, 2013. "Bayesian estimation of discrete games of complete information," Quantitative Marketing and Economics (QME), Springer, vol. 11(1), pages 39-81, March.
    15. Steiner, B.E. & Peschel, A.O. & Grebitus, C., 2017. "Multi-Product Category Choices Labeled for Ecological Footprints: Exploring Psychographics and Evolved Psychological Biases for Characterizing Latent Consumer Classes," Ecological Economics, Elsevier, vol. 140(C), pages 251-264.
    16. Sridhar Narayanan, 2013. "Bayesian estimation of discrete games of complete information," Quantitative Marketing and Economics (QME), Springer, vol. 11(1), pages 39-81, March.
    17. Khalil Rohani & Laila Shin Rohani & Joe Barth, 2017. "The Impact of Consumers Perception of Environment and Technology in Redeeming E-Coupons," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 8(1), pages 1-12, April.
    18. Ron Cronovich & Rennae Daneshvary & R. Keith Schwer, 1997. "The determinants of coupon usage," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1631-1641.
    19. David Besanko & Jean-Pierre Dubé & Sachin Gupta, 2003. "Competitive Price Discrimination Strategies in a Vertical Channel Using Aggregate Retail Data," Management Science, INFORMS, vol. 49(9), pages 1121-1138, September.
    20. Johnson, Joseph & Tellis, Gerard J. & Ip, Edward H., 2013. "To Whom, When, and How Much to Discount? A Constrained Optimization of Customized Temporal Discounts," Journal of Retailing, Elsevier, vol. 89(4), pages 361-373.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:elcore:v:22:y:2022:i:2:d:10.1007_s10660-020-09405-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.