文献详情
The influence of coupon duration on consumers' redemption behavior and brand profitability
文献类型：期刊
通讯作者：Leszczyc, PTLP (reprint author), Univ Queensland, Sch Business, Dept Mkt, St Lucia, Qld 4067, Australia.
期刊名称：EUROPEAN JOURNAL OF OPERATIONAL RESEARCH影响因子和分区
年：2020
卷：281
期：1
页码：114-128
ISSN：0377-2217
关键词：Analytics; Behavioral OR; OR in marketing; Pricing; Retailing
所属部门：商学院
摘要：This research proposes an analytical model of the joint optimization of coupon face value and duration together with the product price, and determines the impact of coupon design on consumers' redemption behavior. A model of rational forward-looking consumers' redemption behavior is derived that incorporates forgetting (to redeem) and stochastic redemption costs. Results show that when product price is exogenous, long-duration coupons may result in increased seller profits and always increase ...More
This research proposes an analytical model of the joint optimization of coupon face value and duration together with the product price, and determines the impact of coupon design on consumers' redemption behavior. A model of rational forward-looking consumers' redemption behavior is derived that incorporates forgetting (to redeem) and stochastic redemption costs. Results show that when product price is exogenous, long-duration coupons may result in increased seller profits and always increase consumer surplus. Moreover, a one-period coupon is never optimal when (1) the difference in valuations for high-value (loyal) and low-value (non-loyal) consumers or (2) the coupon face value is larger than the redemption costs of high-value consumers. Long-duration coupons tend to be optimal when the level of recall of high-value consumers is sufficiently low, which reduces redemption by high-value consumers. Coupon duration together with face value plays an important role in coupons' ability to price discriminate between different consumer segments and to avoid head-on competition with other sellers. Results can replicate empirically observed redemptions patterns, which has important implications for the strategic targeting of coupons to different consumer segments. A coupon may result in an increase or decrease in price. When the difference in valuation between high-value and low-value consumers is high (relative to the redemption costs), a seller can either reduce price and lower face value or increase coupon duration for the purpose of avoiding redemption by high value consumers. (C) 2019 Elsevier B.V. All rights reserved. ...Hide

DOI：10.1016/j.ejor.2019.08.029
百度学术：The influence of coupon duration on consumers' redemption behavior and brand profitability
语言：外文
基金：National Natural Science Foundation of ChinaNational Natural Science Foundation of China [71772172]
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The influence of coupon duration on consumers' redemption behavior and brand profitability.Zhang, Zelin, Ma, Minghui, Leszczyc, Peter T. L. Popkowski, et al. .EUROPEAN JOURNAL OF OPERATIONAL RESEARCH. 2020, 281(1), 114-128.