Competition Strategies for Location-Based Mobile Coupon Promotion

Location-based service heightens consumers’ shopping convenience. By utilizing spatial flexibility of consumers, retailers can target consumers via location-based mobile coupons (LBMCs) to enhance market performance. Considering the strategies for LBMC promotion for two competing retailers, we find that under different market intensities, only no adoption and symmetric adoption of LBMC promotion are the possible equilibria for the competing retailers at a low marginal targeting cost. Then, we extend our model to consider vertical (quality) differentiation and analyze the implications of adopting LBMC promotion for a superior-quality firm (with higher product valuation) and an inferior-quality firm (with lower product valuation). Mixed strategies for LBMC promotion emerge when firms’ products have different qualities. Our research findings provide useful guidance for managers and marketing practitioners to formulate strategies for targeted LBMC promotion.

The Influence of Geolocated Mobile Coupons on Customer Behavior

Despite the growing interest in mobile advertising targeting smartphones' users from a business perspective, academic research is still scarce regarding the implementation of mobile coupons and their redemption in retail stores, especially when integrating the location dimension. This study is addressing the needs for new insights about customers' attitudes, considering the technological and social evolution of the use of smartphones. This article explores how product and retail managers can offer mobile coupon opportunities to increase coupon redemption among potential customers using smartphones, and potentially concerned with privacy issues. Through the theory of planned behavior, this study finds that geolocation is a relevant variable in mobile advertising for a conversion rate optimization. The results suggest that geolocation has a positive impact on behavioral intention and increases the likelihood of coupon redemption.

The Impact of Coupons on the Visit-to-Purchase Funnel

Using data from a field experiment, we find that mobile coupons lift revenue primarily by increasing visits to the website rather than through redemption.

To Whom Should I Send it? Sender Perspective on Incentivized Word of Mouth

This paper examines how consumers’ WOM-related activity can be steered by marketing measures. By conducting an experimental study using mobile coupons as a novel tool of word of mouth, we specifically investigate how monetary incentives foster senders’ decision in targeting particular receivers. Our results show that senders tend to share incentivized WOM with receivers deemed to be close to them when the amount of the incentive is unequal between sender and receiver, and information on the incentive is revealed to both sides. The different amount of incentive for senders and their receivers also leads senders to target receivers who are deal prone.

PLS–SEM in business promotion strategies. A multigroup analysis of mobile coupon users using MICOM

PurposeThe development of Information Systems (IS) and Information and Communication Technologies (ICT) is offering new opportunities for businesses to implement promotion strategies focused on customer attraction and retention. In this sense, mobile coupon usage has increased as a promotion tool, especially in the fast-food sector. However, the use by consumers of these coupons is not homogeneous and it is conditioned by prior experience. Thus, this study aimed to examine variations between Fast Food Restaurant (FFR) customers based on their prior experiences with the use of mobile coupon (expert vs novice users).Design/methodology/approachA sample of 400 fast-food customers was collected using a structured questionnaire. In order to compare the proposed relationships between expert and novice users, a multigroup approach was applied through new, recently proposed evaluation procedures designed for PLS–SEM.FindingsThe results show that the two groups of consumers (expert vs novice users) have notable differences regarding the relationship between perceived ease of use and perceived usefulness. This relationship was the strongest in both groups. However, there are no differences found in other aspects considered as antecedents to mobile coupons usage, for instance, usage intention and attitude.Practical implicationsThis work emphasises the importance of considering differences based on experience between mobile coupon users. Ease of use, perceived consumer utility and increased mobile coupons in apps can be the key to driving effective business strategies based on promotional tactics by FFRs. Likewise, this study can help other researchers in their empirical applications of PLS–SEM analysis.Originality/valueThis study is the first to provide an in-depth analysis of differences based on users' experience with mobile coupons at FFRs. It is innovative in its introduction of the consumer's coupon proneness variable.

Consumers’ redemption behavior of recommended mobile coupons in social network sites

Purpose The purpose of this paper is to explore the key factors that affect consumer redemption intention toward mobile coupons recommended in social network sites (SNS). Design/methodology/approach A research model that integrates recommendation trust, positive utilities, and negative utilities of coupon redemption is developed. With the important role of trust in social recommendation taken into consideration, the key drivers of recommendation trust were analyzed in the model. Data were collected from 210 users with mobile coupon recommendation experience in one of the largest SNS (i.e. WeChat) in China. The authors used partial least squares technique to analyze the model. Findings Recommendation trust and positive utilities (economic benefits and perceived enjoyment) positively affect the intention of mobile coupon redemption. Perceived risk, as a negative utility, negatively influences coupon redemption intention. In addition, swift trust (structure assurance, perceived similarity, trust propensity, and expertise of the recommender), knowledge-based trust (familiarity with the retailers), and emotion-based trust (social tie strength) are key drivers that promote recommendation trust. Originality/value While prior research investigated mobile coupon redemption behavior in which coupons were issued by merchants, limited research analyzed consumer responses toward mobile coupons in social recommendation. This study examines the effects of recommendation trust, positive utilities, and negative utilities on mobile coupon redemption in the context of social recommendation and recognizes the key drivers of recommendation trust.