Street Marketing: How Proximity And Context Drive Coupon Redemption

Sarah Spiekermann-Hoff, Matthias Rothensee, Michael Klafft

Publikation: Wissenschaftliche FachzeitschriftOriginalbeitrag in FachzeitschriftBegutachtung

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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 to determine a coupon campaigns' success.
Design/methodology/approach - The paper reports an empirical study conducted in cooperation
with a restaurant chain: 9.880 Subway coupons were distributed under different
experimental context conditions. Redemption behavior was analyzed with the help of logistic
Findings - We found that even though proximity drives coupon redemption, city center
campaigns seem to be much more sensitive to distance than suburban areas. The further away
the distribution place from the restaurant the less does the amount of monetary incentive
determine the motivation to redeem.
Practical implications - When designing a coupon campaign for a company, coupon
distribution should not follow a 'one-is-good-for-all-strategy' even for one marketer within
one product category. Instead each coupon strategy should carefully consider contextual
Originality - This article is the first to our knowledge that systematically investigates the
impact of context variables on coupon redemption. We focus on context variables that
electronic marketing channels will be able to easily incorporate into personalized mobile
marketing campaigns.
Seiten (von - bis)280 - 289
FachzeitschriftJournal of Consumer Marketing
PublikationsstatusVeröffentlicht - 2011