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1 – 10 of over 3000The British North American colonies were the first western economies to rely on legislature-issued paper monies as an important internal media of exchange. This system arose…
Abstract
The British North American colonies were the first western economies to rely on legislature-issued paper monies as an important internal media of exchange. This system arose piecemeal. In the absence of banks and treasuries that exchanged paper monies at face value for specie monies on demand, colonial governments experimented with other ways to anchor their paper monies to real values in the economy. These mechanisms included tax-redemption, land-backed loans, sinking funds, interest-bearing notes, and legal tender laws. I assess and explain the structure and performance of these mechanisms. This was monetary experimentation on a grand scale.
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Somjit Barat and Audhesh K. Paswan
Given that coupons are one of the most popular promotional tools, this paper aims to investigate how intention to redeem the coupon is affected by the face value of the coupon for…
Abstract
Purpose
Given that coupons are one of the most popular promotional tools, this paper aims to investigate how intention to redeem the coupon is affected by the face value of the coupon for most common grocery items.
Design/methodology/approach
Data were collected using a self‐administered questionnaire from a convenience sample of students and non‐students (total sample size 425) at a south‐western metropolitan university campus town.
Findings
The results suggest that, for low face values of coupon, intention to redeem is positively associated with face value, whereas, for the higher face values of the coupon, the intention remains more or less unchanged. The correlation between intention to redeem the coupon and the perceived sticker price of the product is positive at the lower levels of coupon face value, but becomes negative for higher face values.
Research limitations/implications
One major limitation is the narrow choice of grocery products. Moreover, this study explored intention to redeem a coupon but does not consider the actual purchase behavior. Future studies might test whether the results extrapolate to other products.
Practical implications
The findings are critical for the manager who may be cautioned against indiscriminate issuance of coupons. Specifically, keeping in mind the possible negative effects of a coupon, the manager might contemplate introducing customer segment‐specific coupons. The findings also suggest that coupons may be used for repositioning.
Originality/value
This research partially fills a void about lack of research on coupons from a price perspective. Negative effects of a coupon explained in terms of both marketing and economic theory may be appealing across different disciplines.
The purpose of this article is to determine the optimal use of collateral in order to maximize the borrower's wealth by reducing the interest rate payments. This analysis is to…
Abstract
Purpose
The purpose of this article is to determine the optimal use of collateral in order to maximize the borrower's wealth by reducing the interest rate payments. This analysis is to shed light on the fundamental question whether good or bad borrowers pledge more collateral.
Design/methodology/approach
The analysis bases on a simple firm value model similar to Merton's but with the additional feature that the borrower can bring in collateral. This article not only presents the case with perfect information between borrowers and lenders but also regards the consequences arising from asymmetric information.
Findings
A bad borrower, who is characterized by higher bankruptcy costs, riskier projects, and a lower contribution to the project value, typically pledges more collateral than a good borrower. These relationships base on the existence of perfect information between borrowers and lenders. If asymmetric information in terms of the project's riskiness or the contribution of the borrower to the project is present, these relationships invert and good borrowers tend to pledge more collateral. As a result, the allocation of information between a borrower and a lender is crucial for the optimal choice of collateral.
Research limitations/implications
This research underlines the potential for firms to add firm value by pledging collateral because collateral reduces interest rates and therefore results in more attractive terms of the loan. On the other hand, further empirical research can be done to verify our theoretical finding that under perfect information bad borrowers pledge more collateral, while under asymmetric information primarily good borrowers use collateral.
Originality/value
This paper introduces a new motive for the use of collateral and explains – in contrast to many other theoretical models – why bad borrowers tend to pledge more collateral.
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SangGon (Edward) Lim and Chihyung “Michael” Ok
This study aims to provide a better understanding of how gift card receivers react to the types of gift cards. This study examined the effect of gift card types (intangible…
Abstract
Purpose
This study aims to provide a better understanding of how gift card receivers react to the types of gift cards. This study examined the effect of gift card types (intangible experiences vs less intangible experience vs tangible goods) on a recipient’s willingness to spend more through emotions and perceived effort (Study 1) and on feeling of appreciation (Study 2).
Design/methodology/approach
Study 1 adopted a scenario-based 2 (tangible vs intangible) × 3 ($100 vs $200 vs $300) between-subjects design. Study 2 narrowed the scope of gift card type (intangible vs less intangible).
Findings
Receivers tended to perceive less effort in gift card selection and feel less emotion when receiving gift cards for intangible experiences than when receiving gift cards for both tangible and less intangible products. However, as face value increased, gift card receivers for intangible experiences felt more pleasure and, in turn, rated higher willingness to spend more money than face value than those with gift cards for tangible products.
Research limitations/implications
Future studies can rule out alternative explanations related to brand-related effects, previous experiences and personal preferences.
Practical implications
Service providers should put more effort into tangibilizing the intangibles to reduce receivers’ uncertainty. Also, they can increase their profitability by stimulating gift card receivers’ willingness to spend more money through pleasure.
Originality/value
Answering research calls for examining consumers’ perceptions of different gift card types, this study might be the first to unveil the differential effect of gift card types associated with the tangibility of products on purchase behavior and the underlying emotional mechanism.
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Ralf Wierich and Stephan Zielke
– The aim of this paper is to investigate how different design elements of retailer coupons increase the attitudinal loyalty towards retailers.
Abstract
Purpose
The aim of this paper is to investigate how different design elements of retailer coupons increase the attitudinal loyalty towards retailers.
Design/methodology/approach
Three design elements are manipulated in a 2x2x2 experimental design. Data is analysed using structural equation modeling.
Findings
The results demonstrate that addressing customers personally and face value have a positive impact on attitudinal loyalty. Surprisingly, the positive effect of personalization is stronger than that of typical variations in face value. In contrast, a high minimum purchase amount restriction has a negative total effect on loyalty and neutralizes the positive effects generated by personalization. The results illustrate further that personalization influences loyalty via self-reference and enjoyment independently of any cognitive evaluation of the coupon, while face value and the minimum purchase amount require at least some cognitive processing to have a loyalty impact.
Research limitations/implications
Future studies can use the developed framework to test the impact of other design elements, promotion types or loyalty schemes.
Practical implications
The results underline that personalization offers opportunities for increasing loyalty without the necessity of large investments. As these effects can occur without redemption, coupon promotions should not be evaluated based on redemption rates only.
Originality/value
The study extends existing research by focusing on retailer coupons, analyzing the combined loyalty effects of three coupon design elements and developing a framework to analyze direct and indirect loyalty effects as well.
Judith A. Garretson and Kenneth E. Clow
In recent years, professional service organizations have begun to successfully implement various sales promotion techniques, and potential customers are responding favorably to…
Abstract
In recent years, professional service organizations have begun to successfully implement various sales promotion techniques, and potential customers are responding favorably to such promotions. This exploratory research examined the impact of sales promotions on consumer attitudes and intentions. More specifically, the influence of coupon face value on service quality expectations, perceived purchase risks, and purchase intentions was examined. The results indicate that while coupons positively impact the purchase intentions of dental services, the positive impact was negated by negative impacts on service quality expectations and perceived purchase risk. Further results and implications of the study for professional services are addressed.
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Edwin Love and Erica Mina Okada
– The purpose of this study is to propose differential marketing tactics for high-quality products versus low-price products by building on construal level theory.
Abstract
Purpose
The purpose of this study is to propose differential marketing tactics for high-quality products versus low-price products by building on construal level theory.
Design/methodology/approach
Two studies were conducted, one using students and another using data collected from more than 7,000 online auctions.
Findings
When consumers consider high-quality products, they use more abstract mental models, and when they consider low-price products, they use more concrete mental models. Differentiation based on primary features product is more effective for products that are positioned on quality, while differentiation based on the secondary features is more effective for products that are positioned on price. Also, marketing efforts to attract attention are more effective for products positioned on quality than those positioned on price.
Research limitations/implications
This research focused on how consumers use different mental models for considering high-quality versus low-price product offerings but did not examine whether a given segment/consumer uses different models in considering high-quality versus low-price alternatives.
Practical implications
Managers wishing to reinforce a high-quality position should focus on marketing efforts compatible with consumers’ high level construal by enhancing and highlighting the primary features, and drawing consumers’ attention to their product offerings. Managers wishing to reinforce a low-price positioning should focus on marketing efforts that are compatible with consumers’ low level construal by enhancing and highlighting secondary features.
Originality/value
This research makes an important theoretical link between construal theory and brand positioning.
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Jorge M. Silva‐Risso and Randolph E. Bucklin
The authors develop a logit modeling approach, designed for application to UPC scanner panel data, to assess the effects of coupon promotions on consumer brand choice. The effects…
Abstract
The authors develop a logit modeling approach, designed for application to UPC scanner panel data, to assess the effects of coupon promotions on consumer brand choice. The effects of coupon promotions are captured via two measures: the prevailing level of availability and the prevailing face value of coupons for each brand. Both of these measures are derived from coupon redemptions of a separate sample of households. The approach captures both the advertising effect and the price discount incentive of a coupon. It also avoids drawbacks of previous choice models which have incorporated coupon effects by subtracting the value of a redeemed coupon from the price of the brand purchased. The authors illustrate their modeling approach on data for two product categories: catsup (light coupon usage) and liquid laundry detergent (heavy coupon usage). Findings are reported for coupon users and non‐users as well as across latent segments.
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Sarah Spiekermann, Matthias Rothensee and Michael Klafft
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…
Abstract
Purpose
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.
Design/methodology/approach
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.
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. The further away the distribution place from the restaurant, the less does the amount of monetary incentive determine the motivation to redeem.
Practical implications
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.
Originality/value
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.
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