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In 2009, US coupons set a new record of 367 billion coupons distributed. Yet, while coupon distribution is on the rise, redemption rates remain below 1 percent. This paper aims to show how recognizing context variables, such as proximity, weather, part of town and financial incentives interplay to determine a coupon campaign's success.

The paper reports an empirical study conducted in co‐operation with a restaurant chain: 9.880 Subway coupons were distributed under different experimental context conditions. Redemption behavior was analyzed with the help of logistic regressions.

It was 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.

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 influence.

This paper is the first to the authors' knowledge that systematically investigates the impact of context variables on coupon redemption. It focuses on context variables that electronic marketing channels will be able to easily incorporate into personalized mobile marketing campaigns.

The purpose of this paper is to illustrate how managers can strategize different aspects of mobile coupon promotions to enhance their redemption rates.

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.

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.

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.

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.

The focus of this study lies in understanding the extrinsic vs intrinsic motivators which drive the m-coupon sharing behaviour in social networking sites (SNSs). A consumer can make promotional tool (in our case m-coupons) viral if the cues trigger an apt motivation. This study fills the need gap by identifying which motivations must be focused to make a promotional tool viral by the consumer especially in an emerging economy like India.

We designed conceptual framework based on extensive literature review and employed hierarchal regression methodology to investigate the motivation to share m-coupon.

Sense of self-worth, Socializing and Reciprocity emerge as strong reasons for a consumer to share m-coupons amongst friends and peers in SNS. Results have shown that intrinsic motivation works very effectively when a consumer shares m-coupons in SNSs.

This study has certain limitations. First, the impact of age, gender and education can also influence the results as perception evolves with age and education. Second, in our study, we have not classified m-coupons in different categories. Different types of m-coupons may have a different impact on consumers.

The paper presents findings, which are useful for marketers to develop a customer-centric viral promotional strategy.

This study is one of the few studies in integrating types of motivation with coupon proneness and coupon sharing in social media. This study has specifically targeted the emerging economy where m-coupons usage has seen a surge. Study has shown that it is the intrinsic motivation which is very crucial for encouraging consumer for participating in SNSs and share e-word of mouth amongst friends and peers.

The purpose of this paper is to analyze the effectiveness of social couponing campaigns for hotels. In particular, the perceived effectiveness related to four specific objectives is explored (acquiring and retaining new customers, building brand awareness, balancing seasonality and stimulating demand among existing customers).

A questionnaire-based survey was conducted that involved 108 hotels, each of which has run at least one social couponing campaign through Groupon in Italy. The importance-performance approach was applied to analyze the data.

Overall, the perceived effectiveness of social couponing for hotels is quite low. Social couponing is useful to increase brand awareness but does not encourage customer behavioral loyalty. Larger hotels can successfully use this marketing tool to balance demand seasonality.

The sample size is limited but includes approximately one-fourth of all Italian hotels that have run social coupon campaigns through Groupon. Only social couponing campaigns run through one daily deal site (Groupon) in one country (Italy) were considered.

Social couponing is not perceived as equally effective for all hotels. This study provides hotel managers with suggestions for deciding whether to allocate a share of their marketing resources to social couponing.

To the authors’ knowledge, this is the first paper to present field data to complement the available theoretical knowledge on social couponing for hotels.

While studies about business-to-business (B2B) relationships have mainly addressed buyer–supplier long-term exchanges, focusing on social outcomes such as trust, commitment and cooperation, there is little research that explores the social outcomes which stem from short-term B2B transactions. The purpose of this paper is to explain buyers’ intention to renew a contract after discrete and time-delimited transactions by suggesting a model that complements social exchange theory with theories of fairness. In detail, this study aims to determine how evaluations of economic and social outcomes are complemented by both procedural fairness and distributive fairness.

The hypotheses are tested in the social couponing industry with a survey of a sample of 199 firms purchasing advertising services from daily deal websites. Data are analyzed using covariance-based structural equation modeling (CB-SEM).

The findings reveal direct effects of procedural fairness on social outcomes (satisfaction) and distributive fairness on the intention to renew a contract, negative moderating effect of procedural fairness on the relationship between economic outcomes (campaign effectiveness) and social outcomes (satisfaction).

In discrete, time-delimited transactions, high levels of procedural fairness may partially compensate for low levels of economic outcomes and prevent a reduction in social outcomes. Hence, when economic outcomes are influenced largely by external, uncontrollable conditions, the buyer seems to appreciate the supplier’s efforts to behave fairly.

Social outcomes matter even in discrete transactions and considerations of fairness should be integrated in the management of discrete transactions. Sharing economic outcomes fairly is not sufficient to secure the buyer’s intention to renew the contract.

This study proposes and tests a model that complements social exchange theory with theories of fairness and explains contract renewal in discrete, time-delimited transactions, encompassing both economic outcomes and social outcomes.

The purpose of this paper is to illustrate that text message mobile coupons are marketing communications that are becoming more service‐like in nature. As such, mobile coupons will benefit from firm‐generated service customization strategies.

An experiment compared a mobile coupon with a customized versus non‐customized delivery time. A sample of 244 undergraduate students from a large southeastern US university completed an online questionnaire. The between‐subject design randomly assigned participants to the custom or non‐custom condition. Results were assessed with MANCOVA.

Customizing the delivery time of a mobile coupon improved attitude toward and intention to use the coupon, as well as attitude toward and purchase intent with the firm.

The paper focuses on only one mobile coupon campaign in one product category, while measuring attitudes and intentions, not actual purchase behavior. The sample is also limited by having student participants. Future research should examine these limitations.

The paper provides practitioners with an alternative view of mobile coupons. Whereas traditional paper coupons are mass marketing communications, mobile coupons should be viewed similar to an important service to consumers. Allowing consumers to customize these communications, similar to how consumers customize important service offerings, will enhance the coupon and image of the firm.

This study is the first to suggest that mobile coupons be guided by services marketing theory. This is also the first study to suggest and empirically assess the customization of marketing communications as a firm‐generated strategy designed to enhance mobile coupons. Customization in this context is a co‐production activity.

The purpose of this paper is to demonstrate how to design better awareness and memory of product information using mobile coupon campaigns among those who do not redeem the coupons.

The research involves two field experiments with a Mid Western mobile marketing firm where differently designed coupons were sent out to men and women customers of a fast food chain, and non‐redeemers filled out a survey revealing how much they remembered. The research also connected their subsequent purchases a week later. The data were analyzed using ANOVAs.

Factual ad claims create better recognition than descriptive ad claims in general, but among older working people when ad is viewed in leisure situations men better remember descriptive appeals, and women factual appeals. Also the memory has no effect on purchase intentions or future purchases. In contrast, among younger students, men remember factual ad claims better than descriptive, like women, and their memory has significant effects on subsequent purchase behavior.

Selectivity hypotheses may be applied to design advertising congruity/incongruity based on tasks people are doing in different physical situations. Other limitations include some sampling error (or selectivity) and its difficulties in generalizability across industries.

Managers can build awareness using different types of ad claims depending on gender and situation among older working groups, and use factual appeals for younger groups. Among younger groups the memory of coupons can also drive subsequent purchase behavior.

The paper uncovers the value of non redeeming customers in m‐coupon campaigns, and identifies how to target and design campaigns to best extract that value.

Although there are at least two important characteristics of targeted promotions—promotion individualization (i.e. whether the offer is personalized for the recipient) and notification exclusivity (i.e. how small the number of recipients is)—most previous studies on targeted promotion have conceptualized them synonymously. The purpose of this study is to investigate the effect of targeted promotion on consumer purchases by conceptualizing these separately and incorporating them in a single model. Also, this study explores how the effects of these differ depending on customer loyalty. We particularly examine the promotional responses of extremely loyal customers, distinguishing them from other loyal customers.

Using actual customer purchase data, we develop a two-stage model of the consumer decision-making process involving decisions of whether and how much to purchase. The two characteristics of targeted promotions—promotion individualization and notification exclusivity—first influence the probability of purchase and then the purchase amount given purchase.

The results show that customers respond positively to individualization and exclusivity. The effect of individualization is reduced as customer loyalty increases from loyal customers to extremely loyal customers while that of exclusivity remains the same.

By clearly identifying the two characteristics of targeted promotions and developing an empirical model that captures the effects of these separately, this paper provides new academic and managerial insights that were not clearly identified in the current literature.

The purpose of this paper is to uncover common and outdated misconceptions about couponing and present new, updated strategies that can improve redemption statistics.

ICOM sought to understand the landscape of couponing by examining data from a 20‐year database compiled through the course of designing 6,300 targeted direct mail programs and issuing 425 million coupons to 28 million US and Canadian households that voluntarily provide information about purchasing preferences.

The paper exposes important information about current consumer behavior with regards to coupons and coupon redemption. The research identifies a “sweet spot” which, when coupon value and expiration length criteria sync, creates perfect conditions and drives coupon redemption.

Marketers must rethink coupon campaign strategies to accommodate the changing consumer and couponing market. This paper offers straightforward recommendations for altering approach.

The paper provides a fresh profile of the couponing market and variable drivers of consumer redemption, derived from an unprecedented amount of consumer data gathered over an extended period of time.

The purpose of this paper is to examine differing attitudinal characteristics (attitude and subjective norms) and perceptions of coupon characteristics (coupon value and coupon expiration date) towards coupon redemption based on psychological and demographic segments of consumers who may well differ in their purchase motivations and accompanying decision making.

Following a detailed literature review, the characteristics are examined by means of a structured questionnaire administered via “mall intercept” to a convenience sample in major shopping areas in Malaysia.

Following a variety of statistical tests, the findings support the use of coupon proneness, value consciousness, price consciousness and brand involvement as separate variables underpinning coupon usage propensity and indicated the value of coupons if used judiciously in relation to pre-identified segments.

The limitations associated with convenience sampling apply here, that is the findings cannot be generalised.

The basis for sound parameters for the use of coupons are of value to marketing management.

The paper offers an unique insight into coupon propensity and usage from a little-known economy. Its value lies in the degrees of support offered to findings from more advanced economies and a basis for differentiation in the Malaysian context.