Enhancing mobile coupon redemption in fast food campaigns

Abstract

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 dataset of campaign designs and responses were provided by a Midwestern mobile marketing firm. The data were further analyzed using analysis of variance and mean comparisons. Findings Consumers are more responsive to coupon designs which are congruent with the nature of the product. For utilitarian products, they respond more to “smarter” deals with dollar or percent off, and for hedonic products, they respond more to the timing of receiving the message. Practical implications Marketers need to better understand local customer demographic profiles to be able to identify their lifestyle – convenient timings, needs, and cravings, so that coupons can be accordingly designed. Originality/value This paper examines behavioral data in a new (mobile) medium of direct marketing, which allows the authors to capture data across a wider range of physical situations than traditional media, adding more richness and validity to the findings of the paper.