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Scanning for discounts: examining the redemption of competing mobile coupons

Author

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  • Paul Mills

    (Cleveland State University)

  • César Zamudio

    (Kent State University)

Abstract

Coupons research has typically focused on single-coupon redemption, with scant attention devoted to multiple, competing coupons. To bridge this gap, we observe supermarket shoppers who used their smartphones to scan products in-store, receiving both coupons for the scanned product and several others as a result. We model the determinants of redemption in this context, particularly net price range (NPR), coupon value, brand loyalty, and number of coupons. Latent class analysis uncovers two consumer segments: brand-focused shoppers (79.9%), who use internal reference prices, and deal-prone shoppers (20.1%), who use stimulus-based reference prices. Targeting by means of segment membership, NPR, and loyalty is indispensable: the same $0.50 coupon can have a redemption probability as low as 30% and as large as 80%, depending on these characteristics. Overall, the study sheds light on drivers of redemption under competition and provides managers with a blueprint to improve redemption rates by targeting shoppers with customized coupons.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:joamsc:v:46:y:2018:i:5:d:10.1007_s11747-018-0592-7
    DOI: 10.1007/s11747-018-0592-7
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    Cited by:

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    2. 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.
    3. Shrihari Sridhar & Eric Fang, 2019. "New vistas for marketing strategy: digital, data-rich, and developing market (D3) environments," Journal of the Academy of Marketing Science, Springer, vol. 47(6), pages 977-985, November.
    4. 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).
    5. Ladhari, Riadh & Hudon, Tristan & Massa, Elodie & Souiden, Nizar, 2022. "The determinants of Women's redemption of geo-targeted m-coupons," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    6. Bies, Suzanne M.T.A. & Bronnenberg, Bart J. & Gijsbrechts, Els, 2021. "How push messaging impacts consumer spending and reward redemption in store-loyalty programs," International Journal of Research in Marketing, Elsevier, vol. 38(4), pages 877-899.
    7. Abhishek Borah & Francesca Bonetti & Angelito Calma & José Martí-Parreño, 2023. "The Journal of the Academy of Marketing Science at 50: A historical analysis," Journal of the Academy of Marketing Science, Springer, vol. 51(1), pages 222-243, January.
    8. Bies, Suzanne, 2022. "Examining the effectiveness of activation techniques on consumer behavior in temporary loyalty programs," Other publications TiSEM ade86df3-4846-4318-938f-a, Tilburg University, School of Economics and Management.

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