IDEAS home Printed from https://ideas.repec.org/a/pal/jmarka/v12y2024i2d10.1057_s41270-022-00200-8.html
   My bibliography  Save this article

Targeting effectiveness of mobile coupons: from exposure to purchase

Author

Listed:
  • Wujin Chu

    (Seoul National University)

  • Jaewoo Joo

    (Kookmin University)

Abstract

This research examines the effectiveness of traffic-boosting mobile coupons through a randomized field experiment of over half a million South Korean consumers. The research question analyzes the effectiveness of the content (six message types) and context (three days out of the week for coupon distribution) of mobile coupons on response-to-coupon, store visits, and purchase amount for a health and beauty retail chain. Big data on individual customers, gathered from a field experiment, was analyzed through bivariate probit, mediation analysis, and tobit regression. The results show that message content affects store visits, which was fully mediated through response-to-coupon. In particular, messages that “made the amount of discount salient” and “formed a personal connection” were more effective than other messages. In terms of context, messages sent during the weekdays were more effective in increasing store visit, than those sent during the weekend.

Suggested Citation

  • Wujin Chu & Jaewoo Joo, 2024. "Targeting effectiveness of mobile coupons: from exposure to purchase," Journal of Marketing Analytics, Palgrave Macmillan, vol. 12(2), pages 342-354, June.
  • Handle: RePEc:pal:jmarka:v:12:y:2024:i:2:d:10.1057_s41270-022-00200-8
    DOI: 10.1057/s41270-022-00200-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41270-022-00200-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1057/s41270-022-00200-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stefan F. Bernritter & Paul E. Ketelaar & Francesca Sotgiu, 2021. "Behaviorally targeted location-based mobile marketing," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 677-702, July.
    2. Bombaij, Nick J.F. & Gelper, Sarah & Dekimpe, Marnik G., 2022. "Designing successful temporary loyalty programs: An exploratory study on retailer and country differences," International Journal of Research in Marketing, Elsevier, vol. 39(4), pages 1275-1295.
    3. Jiang, Yuqing & Liu, Fan & Lim, Andrew, 2021. "Digital coupon promotion and platform selection in the presence of delivery effort," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    4. Singh, Sonika & Swait, Joffre, 2017. "Channels for search and purchase: Does mobile Internet matter?," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 123-134.
    5. Aguirre, Elizabeth & Mahr, Dominik & Grewal, Dhruv & de Ruyter, Ko & Wetzels, Martin, 2015. "Unraveling the Personalization Paradox: The Effect of Information Collection and Trust-Building Strategies on Online Advertisement Effectiveness," Journal of Retailing, Elsevier, vol. 91(1), pages 34-49.
    6. Andrea C. Morales, 2005. "Giving Firms an "E" for Effort: Consumer Responses to High-Effort Firms," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 31(4), pages 806-812, March.
    7. Martins, José & Costa, Catarina & Oliveira, Tiago & Gonçalves, Ramiro & Branco, Frederico, 2019. "How smartphone advertising influences consumers' purchase intention," Journal of Business Research, Elsevier, vol. 94(C), pages 378-387.
    8. Naquita Maria-Jose Achadinha & Lindiwe Jama & Petrus Nel, 2014. "The drivers of consumers’ intention to redeem a push mobile coupon," Behaviour and Information Technology, Taylor & Francis Journals, vol. 33(12), pages 1306-1316, December.
    9. Michelle Andrews & Xueming Luo & Zheng Fang & Anindya Ghose, 2016. "Mobile Ad Effectiveness: Hyper-Contextual Targeting with Crowdedness," Marketing Science, INFORMS, vol. 35(2), pages 218-233, March.
    10. Andrews, Michelle & Goehring, Jody & Hui, Sam & Pancras, Joseph & Thornswood, Lance, 2016. "Mobile Promotions: A Framework and Research Priorities," Journal of Interactive Marketing, Elsevier, vol. 34(C), pages 15-24.
    11. Wu, Cheng-Lung & Ma, Ngai Ki, 2022. "The impact of customised mobile marketing on passenger shopping behaviour in the airport terminal," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    12. Gauzente, Claire & Roy, Yves, 2012. "Message content in keyword campaigns, click behavior, and price-consciousness: A study of millennial consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 19(1), pages 78-87.
    13. Breugelmans, Els & Campo, Katia, 2016. "Cross-Channel Effects of Price Promotions: An Empirical Analysis of the Multi-Channel Grocery Retail Sector," Journal of Retailing, Elsevier, vol. 92(3), pages 333-351.
    14. Anindya Ghose & Beibei Li & Siyuan Liu, 2019. "Mobile Targeting Using Customer Trajectory Patterns," Management Science, INFORMS, vol. 65(11), pages 5027-5049, November.
    15. Luo, Meiling & Li, Gang & Chen, Xudong, 2021. "Competitive location-based mobile coupon targeting strategy," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    16. Shareef, Mahmud Akhter & Dwivedi, Yogesh K. & Kumar, Vinod & Kumar, Uma, 2017. "Content design of advertisement for consumer exposure: Mobile marketing through short messaging service," International Journal of Information Management, Elsevier, vol. 37(4), pages 257-268.
    17. Giuseppe De Luca, 2008. "SNP and SML estimation of univariate and bivariate binary-choice models," Stata Journal, StataCorp LP, vol. 8(2), pages 190-220, June.
    18. Montazeri, Samaneh & Tamaddoni, Ali & Stakhovych, Stanislav & Ewing, Michael, 2021. "Empirical decomposition of customer responses to discount coupons in online FMCG retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    19. Chenxi Li & Xueming Luo & Cheng Zhang, 2017. "Sunny, Rainy, and Cloudy with a Chance of Mobile Promotion Effectiveness," Marketing Science, INFORMS, vol. 36(5), pages 762-779, September.
    20. Siliang Tong & Xueming Luo & Bo Xu, 2020. "Personalized mobile marketing strategies," Journal of the Academy of Marketing Science, Springer, vol. 48(1), pages 64-78, January.
    21. Lin Guo & Thomas W. Gruen & Chuanyi Tang, 2017. "Seeing relationships through the lens of psychological contracts: the structure of consumer service relationships," Journal of the Academy of Marketing Science, Springer, vol. 45(3), pages 357-376, May.
    22. Dickinger, Astrid & Kleijnen, Mirella, 2008. "Coupons going wireless: Determinants of consumer intentions to redeem mobile coupons," Journal of Interactive Marketing, Elsevier, vol. 22(3), pages 23-39.
    23. Shun Yin Lam & Mark Vandenbosch & John Hulland & Michael Pearce, 2001. "Evaluating Promotions in Shopping Environments: Decomposing Sales Response into Attraction, Conversion, and Spending Effects," Marketing Science, INFORMS, vol. 20(2), pages 194-215, March.
    24. Christopher K. Hsee & Yang Yang & Yangjie Gu & Jie Chen, 2009. "Specification Seeking: How Product Specifications Influence Consumer Preference," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(6), pages 952-966, April.
    25. Gauri, Dinesh K. & Ratchford, Brian & Pancras, Joseph & Talukdar, Debabrata, 2017. "An Empirical Analysis of the Impact of Promotional Discounts on Store Performance," Journal of Retailing, Elsevier, vol. 93(3), pages 283-303.
    26. Bagozzi, Richard P & Baumgartner, Hans & Yi, Youjae, 1992. "State versus Action Orientation and the Theory of Reasoned Action: An Application to Coupon Usage," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(4), pages 505-518, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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).
    2. Huang, Rui & Huang, Minxue & Zhao, Jing & Liu, Yuan, 2024. "Absence makes the heart grow fonder: The interactive effect of crowding information and spatial distance on consumers’ patronage intention," Journal of Business Research, Elsevier, vol. 176(C).
    3. Siliang Tong & Xueming Luo & Bo Xu, 2020. "Personalized mobile marketing strategies," Journal of the Academy of Marketing Science, Springer, vol. 48(1), pages 64-78, January.
    4. Ketelaar, Paul E. & Bernritter, Stefan F. & van Woudenberg, Thabo J. & Rozendaal, Esther & Konig, Ruben P. & Hühn, Arief Ernst & Van Gisbergen, Marnix S. & Janssen, Loes, 2018. "“Opening” location-based mobile ads: How openness and location congruency of location-based ads weaken negative effects of intrusiveness on brand choice," Journal of Business Research, Elsevier, vol. 91(C), pages 277-285.
    5. Villanova, Daniel & Bodapati, Anand V. & Puccinelli, Nancy M. & Tsiros, Michael & Goodstein, Ronald C. & Kushwaha, Tarun & Suri, Rajneesh & Ho, Henry & Brandon, Renee & Hatfield, Cheryl, 2021. "Retailer Marketing Communications in the Digital Age: Getting the Right Message to the Right Shopper at the Right Time," Journal of Retailing, Elsevier, vol. 97(1), pages 116-132.
    6. David A. Schweidel & Yakov Bart & J. Jeffrey Inman & Andrew T. Stephen & Barak Libai & Michelle Andrews & Ana Babić Rosario & Inyoung Chae & Zoey Chen & Daniella Kupor & Chiara Longoni & Felipe Thomaz, 2022. "How consumer digital signals are reshaping the customer journey," Journal of the Academy of Marketing Science, Springer, vol. 50(6), pages 1257-1276, November.
    7. Darvasi, Gábor & Spann, Martin & Zubcsek, Peter Pal, 2024. "How observation of other shoppers increases the in-store use of mobile technology," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    8. Thapa, Sajani & Guzmán, Francisco & Paswan, Audhesh, 2024. "We are just 10 feet away! How does location-based advertising affect consumer-brand engagement?," Journal of Business Research, Elsevier, vol. 172(C).
    9. 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.
    10. Ding, Long & Liu, Peng & Hu, Sen, 2023. "Geo-Fencing or Geo-Conquesting? a strategic analysis of Location-Based coupon under different market structures," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 174(C).
    11. Wang, Wei & Li, Gang & Fung, Richard Y.K. & Cheng, T.C.E., 2019. "Mobile Advertising and Traffic Conversion: The Effects of Front Traffic and Spatial Competition," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 84-101.
    12. Bhatt, Siddharth & Pai, Dinesh R. & DelVecchio, Devon, 2023. "The dark side of multiunit discounts: Multiunit discounts reduce rest of basket revenue," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    13. Wu, Cheng-Lung & Ma, Ngai Ki, 2022. "The impact of customised mobile marketing on passenger shopping behaviour in the airport terminal," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    14. Stefan F. Bernritter & Paul E. Ketelaar & Francesca Sotgiu, 2021. "Behaviorally targeted location-based mobile marketing," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 677-702, July.
    15. Ryo Kato & Takahiro Hoshino & Daisuke Moriwaki & Shintaro Okazaki, 2022. "Mobile Targeting: Exploring the Role of Area Familiarity, Store Knowledge, and Promotional Incentives," Discussion Paper Series DP2022-10, Research Institute for Economics & Business Administration, Kobe University.
    16. 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.
    17. Cloarec, Julien, 2020. "The personalization–privacy paradox in the attention economy," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    18. Park, Chang Hee & Park, Young-Hoon & Schweidel, David A., 2018. "The effects of mobile promotions on customer purchase dynamics," International Journal of Research in Marketing, Elsevier, vol. 35(3), pages 453-470.
    19. 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).
    20. März, Armin & Lachner, Michael & Heumann, Christian G. & Schumann, Jan H. & von Wangenheim, Florian, 2021. "How You Remind Me! The Influence of Mobile Push Notifications on Success Rates in Last-Minute Bidding," Journal of Interactive Marketing, Elsevier, vol. 54(C), pages 11-24.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jmarka:v:12:y:2024:i:2:d:10.1057_s41270-022-00200-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.