Purpose - In 2009, U.S. coupons set a new record of 367 billion coupons distributed. Yet, while coupon distribution is on the rise, redemption rates remain below 1%. This article shows how recognizing context variables, such as proximity, weather, part of town and financial incentives interplay...

The price discrimination literature typically makes the assumption of no consumer arbitrage. This assumption is increasingly violated in the digital economy, where coupons are traded with increased frequency online. In this paper, we analyze the welfare impacts of coupon trading using a modified...

The consumer goods market is characterized by strong competition. Thus, to bind customers to the company, a higher priority needs to be attributed to customer retention measures. Such measures include the loyalty card, but the use of the physical card is declining. To counteract this decline,...

Avenues for the delivery of loyalty programs have rapidly shifted from plastic card schemes to mobile-app-based initiatives; yet, our understanding of the economic value presented by the latter (i.e., loyalty apps) has not kept pace with this development. We examine the effects of loyalty app...

Purpose – The purpose of this paper is to illustrate how managers can strategize different aspects of mobile coupon promotions to enhance their redemption rates. Design/methodology/approach – A secondary data set of campaign designs and responses were provided by a Midwestern mobile...

With the explosion of the mobile web, companies and brands are relying more and more on inbound marketing, focusing on generating dialogues and providing customers with more relevant and customized ad content. Interruptions, which were often used as attention-grabbing tactics, seem to be...

In this paper, we examine the effect of relationship perceptions and relationship marketing instruments on customer share development. We also study the interaction effect of these instruments with behavioral loyalty and relationship perceptions. This study is executed among a sample of...

During the past decade, the preferred medium for advertising has seen a dramatic shift away from print media and other traditional means of distribution. In 2009 alone, it is estimated that advertising spending dropped by between 10 and 20 percent for newspapers, consumer magazines, radio, and...

We estimate the joint impact of the frequency reward and customer tier components of a loyalty program on customer behavior and resultant sales. We provide an integrated analysis of a loyalty program incorporating customers' purchase and cash-in decisions, points pressure and rewarded behavior...