What is the average coupon redemption rate 2010

This represents a 2. In addition, CPG coupon redemption in the first half of represented a significant 7. In turn, CPG coupon redemption in this period, which many consider to be the low point of the economic recession, was up an impressive In the first half of , CPG marketers distributed billion coupons, down 6. The first half of represented The first half of saw a decrease in coupon distribution as well as redemption, as marketers distributed billion coupons in the first half of the prior year, representing a 6.

CPG marketers allocated Interestingly, brand popularity was not significant for the number of coupons issued or the redemption rate of buy-one-get-one-free coupons. Coupon users are indifferent to the brand if they can get another product for free. The average number of coupons issued for buy-one-get-one-free coupons is greater than the average number of bonus coupons issued. This study confirms earlier studies on the motivational factors that contribute to the acquisition and redemption of coupons or reconfirms the relationships with actual data by incorporating public data from external sources [24].

We also found that although customers are willing to acquire and redeem mobile coupons, whether or not they do so will still depend on how useful customers perceive the coupon type to be, and this is still negatively affected by the final price of the product. The results yield new insights for mobile marketers in suggesting that mobile coupon apps should use information pertaining to products, stores, and coupon goals to identify the appropriate coupon types and products.

By assessing the price level of products and the brand popularity of stores, mobile coupon apps can suggest the most suitable types of coupon and target products [35], [36].

For example, to increase the number of coupons issued, stores should provide buy-one-get-one-free coupons for lower-priced products. However, if the store hopes to increase product sales, issuing bonus coupons will be more effective than buy-one-get-one-free coupons.

Stores that are less popular should implement buy-one-get-one-free coupon promotions because brand popularity and coupon usage are not significantly correlated. The use of average values, while providing approximate values for the product price, represents one limitation of this study.

As stated in the data section, the average price of all applicable products when a store offered a single coupon that could be redeemed against several products was applied. Coupon users chose several products from the stores when they used those coupons, but no precise information on what they ordered was available. Thus, the average product price in store is a reasonable substitute for the actual product price. Another limitation is that only about half of the original dataset, which had 6, coupons, was used.

Most stores that were not included in the analysis dataset did not have their own websites, or their product information was not described on other sites. In addition, some stores had no information about the number of searches that they received via the search portal Naver; hence, their brand popularity information was unavailable.

Therefore, those stores were eliminated from the dataset. Furthermore, we used only the dataset from one mobile coupon service provider to test the hypotheses in this study. The mobile service provider can influence user behavior, for example, with respect to the number, type, and value of coupons that they access. The rise in mobile couponing is not simply a change from paper to digital but involves a dramatic transformation of the entire couponing process.

Not only has the format for couponing changed, but the entire process has been simplified and made more accessible. The findings of this study are that the functional face value and product price and social brand popularity values are essential facets of customer value for mobile bonus coupons. The positive effect of face value and negative effect of product price was asserted, and the complex role played by social value in coupon acquisition and redemption was also identified.

Also, the effects of customer value differed according to the coupon types analyzed. These findings confirm the results of previous studies on the impact of functional and social value with the actual usage data.

Future research could investigate the interaction effects between functional and social values for coupon acquisition and redemption.

And these effects will be very different according to diverse coupon types. Thus, it needs to be tested with more types of coupons. Also, the presentation of the coupons to users may have influenced their choices.

The presentation includes the characteristics of the coupon itself, such as images and text, and personalized suggestions tailored to each individual. Future research could, therefore, focus on testing the effects of presentation on coupon use. Alford and A.

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Contact us. Please note you do not have access to teaching notes. Other access options You may be able to access teaching notes by logging in via your Emerald profile. Abstract Purpose — In , US coupons set a new record of billion coupons distributed. Findings — It was found that even though proximity drives coupon redemption, city center campaigns seem to be much more sensitive to distance than suburban areas.