This article examines omnichannel redemption options when issuing digital coupons over social media. It investigates which channels or combinations of them provide optimal performance in terms of service-quality perception, customer satisfaction, and revenue. For that purpose, it compares three...

Spatial models in retailing allow for correlations among purchase decisions from consumers within predefined geographic areas. The purpose of these models is to control for unobserved demand side effects at the regional-level (e.g., a neighborhood), but they typically ignore synergies among...

This study measures the extent to which Seoul's COVID-19 shopping coupon program affects individuals' consumption. Unlike other COVID-19-related transfer programs, the Seoul Metropolitan government provides consumption coupons depending on income. We quantify the causal effect of Seoul's program...

This study measures the extent to which Seoul's COVID-19 shopping coupon program affects individuals' consumption. Unlike other COVID-19-related transfer programs, the Seoul Metropolitan government provides consumption coupons depending on income. We quantify the causal effect of Seoul's program...

Der vorliegende Beitrag beleuchtet mögliche Wohlfahrtswirkungen eines Einsatzes von Algorithmen. Oftmals können diese Produkte verbessern und die Effizienz von Prozessen erhöhen können in einigen Bereichen wie der Medizin, der Landwirtschaft, der Logistik, etc. erhebliche gesellschaftliche...

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,...

Past research shows that loyalty programs can generate switching costs for consumers and increase their purchase frequency. Theoretical work suggests that if switching costs are significant, firms should charge lower prices in the early periods of a program to boost market share, and increase...

Loyalty programs (LPs) are widely used by firms but not well understood. These programs provide discounts and perks to loyal customers and are costly to administer, but produce uncertain changes in spending patterns. We use a large and detailed dataset on customer shopping behavior at one of the...

This article evaluates two different remedies for consumers who have been injured by a price overcharge on the sale of a good. Under a coupon remedy, injured consumers are awarded coupons that can be used for a limited period of time to purchase the good at a price below that which prevails...

Within an intense competition in the retail sector, achieving a high store equity may have been be a means to gain competitive advantage for retailers. However, their sole reliance on store attributes may not be sufficient to build a relationship with customers, as prior studies have...

This article studies optimal remedies in a setting in which damages vary among plaintiffs and are difficult to determine. We show that giving plaintiffs a choice between cash and coupons to purchase units of the defendant's product at a discount -- a "coupon-cash remedy" -- is superior to cash...

Many retailers use loyalty programs to attract new customers and to retain existing ones. The program should be recognized as beneficial to customers in order to build customer loyalty. A critical key of a success of a loyalty program is whether a consumer can perceive and identify the benefits...

Purpose – The South African Government needs to increase fiscal revenues to cater to increased government spending. This paper aims to argue that the South African Revenue Service (SARS) has an opportunity to tax the receipt of customer loyalty programme awards in the hands of customers, with...

Using a unique data set that includes individually identifiable consumer online browsing and purchase data in the restaurant industry, this paper examines how individual consumer shopping characteristics and product characteristics moderate the effect of online reviews on individual consumer...

We develop an incentive-aligned experimental paradigm to study how consumer purchase dynamics are affected by the interplay between the loyalty programs and the pricing and promotional strategies of competing firms. In our experiment, subjects made sequential choices between two competing...

It is standard procedure to use short-term measures for designing customized marketing campaigns and evaluating their success. We consider the integration of customer lifetime value (CLV) thinking into the category selection problem for targeted coupons. This problem involves two primary...

This paper examines the effects of supermarket loyalty programs on the demand for private labels (PLs). Using transaction level data on grocery purchases and individual level information on the membership of loyalty programs, I estimate a model of demand in which membership may affect the...

Firms use coupons to stimulate demand. Although couponing is popular in practice, limited research has examined the causal effects of coupons on visit, search, and purchase behaviors among heterogeneous customers. In this paper, we explore coupon effects using data from a randomized field...

Coupon promotions have been increasingly used with the development of electronic commerce technologies. The outcomes of the long-term effect of coupon promotions have been mixed, likely due in part to the challenge in data and methodology. Using two field experiments at a firm that owns and...

We study the impact of launching a non-tiered customer loyalty program on consumers' spending per visit, frequency of visits and attrition rates, as well as the overall customer value. We demonstrate these results both through descriptive difference-in-difference regressions as well as through a...