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1 – 10 of over 1000
Article
Publication date: 2 November 2010

Kesha K. Coker, Deepa Pillai and Siva K. Balasubramanian

Rewards from sales promotions may be either immediate (e.g. instant savings, coupons, instant rebates) or delayed (e.g. rebates, refunds). The latter type is of interest in this…

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Abstract

Purpose

Rewards from sales promotions may be either immediate (e.g. instant savings, coupons, instant rebates) or delayed (e.g. rebates, refunds). The latter type is of interest in this study. The purpose of this paper is to present the hyperbolic discounting framework as an explanation for how consumers delay‐discount rewards, and test whether this holds for both high‐price and low‐price product categories.

Design/methodology/approach

Data were collected by administering two online surveys to respondents. One survey presented choice scenarios between sales promotion formats for a high‐priced product (a laptop, n=154) and the other for a low‐priced product (a cell phone, n=98). Hyperbolic and exponential functions were then fitted to the data.

Findings

The hyperbolic function had a better fit than the exponential function for the low‐priced product. However, this effect was not evident in the case of the high‐priced product; no significant difference was found between the functions. The rate of discounting was greater for the high‐priced product than for the low‐priced product. Thus, for low‐priced products, rather than discount a reward rationally, consumers tend to discount the value of the reward at a decreasing rate.

Originality/value

This study addresses delay discounting in the context of a typical consumer buying situation. It also addresses the possibility of consumers applying different forms of discounting to products at different price levels and tests for the same. The results are of considerable significance for marketers wishing to offer price discounts to consumers. For low‐priced products, marketers seem to have more flexibility in delaying the reward, since the rate of discounting decreases for longer delay periods. At the same time, the discount rate for high‐priced products is higher than that for low‐priced products, hence delay periods may have a more critical role as discounted values fall steeply with an increase in delay to reward.

Details

Journal of Product & Brand Management, vol. 19 no. 7
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 18 May 2020

Claire Lambert and Edmund Goh

This industry viewpoint paper provides a comprehensive overview and critical viewpoint on the use of collectable toy premiums via instant reward programs (IRP) within the retail…

1026

Abstract

Purpose

This industry viewpoint paper provides a comprehensive overview and critical viewpoint on the use of collectable toy premiums via instant reward programs (IRP) within the retail industry as a marketing tool.

Design/methodology/approach

This paper draws upon the uses of a “free” collectable toy premium promotion with a fixed purchase spend (via an IRP) in the supermarket industry as a marketing instrument to increase customer basket spend and repeat visits. Reflections on the recent use of toy premiums by Australian supermarket retailers are also utilised to highlight the ingredients for a successful promotion but also the controversies associated with such promotions.

Findings

One of the key findings suggest that the role of toy premiums is a successful marketing tool by retailers to increase customer total basket spending. However, notable points of caution regarding offering IRPs incorporating collectable toy premiums promotions are established, including environmental concerns and the social, ethical dilemma as to whether these promotions are indirectly targeted at children rather than adult consumers.

Practical implications

The findings have important implications for retailers to attract customer attention, increased market spend and repeat purchases through a desired collectable premium promotion (via an IRP).

Originality/value

This is the first paper to critically review the usage of collectable toy premiums within the supermarket retail industry.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 33 no. 2
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 13 March 2019

Kim-Shyan Fam, Pedro Q. Brito, Mahesh Gadekar, James E. Richard, Ugtakh Jargal and Wenchao Liu

The purpose of this paper is to examine and compare the influence of age, education, income, product involvement and sales promotion (SP) characteristics on consumer attitudes…

3324

Abstract

Purpose

The purpose of this paper is to examine and compare the influence of age, education, income, product involvement and sales promotion (SP) characteristics on consumer attitudes towards SP across eight culturally dissimilar environments.

Design/methodology/approach

A multi-country mall intercept and mail survey was conducted in Brunei, China, Hong Kong, Indonesia, Malaysia, New Zealand, Singapore and Thailand (n=4,125 respondents).

Findings

Country, education level and income significantly influence consumer attitudes towards SP. Some countries show a significant monetary value interaction effect. Consumers using delayed-reward SPT reported a significantly more positive attitude towards SP. Discounts and coupons are the two most highly ranked SP across the sampled countries.

Research limitations/implications

Limitations include the use of intercept and mail sampling. Extending the study to include additional Asian countries and other regions would benefit the understanding of cultural influences on SP.

Practical implications

Multinational marketing managers should consider three aspects of SP implementation strategy: cultural and demographic factors, interaction between delayed-reward SP and socio-demographics variables; country specific SP preferences to promote both sales and brand equity.

Originality/value

This study investigates and extends research on SP across cultures. In particular the research helps better understand the impact of demographic factors and culture on attitudes towards SP, and implementation of global promotions.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 31 no. 2
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 6 March 2007

Patrali Chatterjee

This research aims to investigate how consumers differ in their interpretation of advertised and “surprise” (or unexpected) next‐purchase coupons as delayed rewards or immediate…

3996

Abstract

Purpose

This research aims to investigate how consumers differ in their interpretation of advertised and “surprise” (or unexpected) next‐purchase coupons as delayed rewards or immediate losses based on promotion context and coupon start date restrictions.

Design/methodology/approach

Two laboratory experiments examine how consumers respond to next‐purchase coupons. In Study 1, next‐purchase coupon types (advertised; unexpected) vs competing brand promotions (yes; no) vs coupon start date restriction (unrestricted; restricted to future start date) between‐subjects experimental design was used to examine the impact on purchase satisfaction, perceived promotion value, and perceived retailer fairness. In Study 2, four between‐subjects factors were used to examine the impact on purchase satisfaction, perceived value, and retailer fairness: next‐purchase coupon type vs coupon start date restriction vs coupon target restriction (brand‐specific; non brand‐specific) and the measured need‐for‐cognition variable (high; low).

Findings

Study 1 indicates that unexpected next‐purchase coupons lead to higher purchase satisfaction but lower perceptions of retailer fairness compared to advertised coupons. Study 2 indicates that consumer predisposition toward effortful thought (NFC) amplifies the impact of unrestricted start date on perceptions of retailer unfairness. Furthermore, this effect is stronger on purchase satisfaction and perceived value for unrestricted unexpected next‐purchase coupons.

Research limitations/implications

Results imply that advertised and unexpected next‐purchase coupons differ in their impact on post‐purchase outcomes of consumers. Differences in competing brand promotions and coupon start date restrictions lead to interpretations of next‐purchase coupons as immediate loss vs delayed gains.

Practical implications

Managerial implications for the design and use of next‐purchase promotions are discussed.

Originality/value

This research paper is the first to study how consumers respond to checkout or next‐purchase coupons.

Details

Journal of Product & Brand Management, vol. 16 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 17 December 2021

Muhammad Ashfaq, Qingyu Zhang, Abaid Ullah Zafar, Mehwish Malik and Abdul Waheed

Technology has emerged as a leading tool to address concerns regarding climate change in the recent era. As a result, the green mobile application – Ant Forest – was developed…

1405

Abstract

Purpose

Technology has emerged as a leading tool to address concerns regarding climate change in the recent era. As a result, the green mobile application – Ant Forest – was developed, and it has considerable potential to reduce negative environmental impacts by encouraging its users to become involved in eco-friendly activities. Ant Forest is a novel unexplored green mobile gaming phenomenon. To address this gap, this study explores the influence of user experience (cognitive experience and affective experience), personal attributes (affection and altruism) and motivational factors in game play (reward for activities and self-promotion) on the continuation intention toward Ant Forest.

Design/methodology/approach

The authors assessed the data using partial least squares structural equation modeling (PLS-SEM) for understanding users' continuation intention toward Ant Forest.

Findings

Through a survey of 337 Ant Forest users, the results reveal that cognitive and affective experiences substantially affect Ant Forest continuation intention. Personal attributes and motivational factors also stimulate users to continue using Ant Forest.

Originality/value

The authors build and confirm a conceptual framework to understand users' continuation intention toward a novel unexplored Ant Forest phenomenon.

Details

Industrial Management & Data Systems, vol. 122 no. 2
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 24 May 2013

Qing Yao, Rong Chen and Ping Zhao

This paper aims to try to investigate how consumers respond to precise versus imprecise promotional rewards at varied probabilities, including small ones and whether the effect is…

1246

Abstract

Purpose

This paper aims to try to investigate how consumers respond to precise versus imprecise promotional rewards at varied probabilities, including small ones and whether the effect is contingent on purchase value and promotion budget.

Design/methodology/approach

Based on reviewing the literature on the ambiguity effect, the certainty effect and small probabilities, the hypotheses are tested by three experimental studies.

Findings

The experiments show that at a small winning probability, promotion with imprecise reward is more attractive than with precise reward. For high value purchases, a small‐probability promotion with imprecise reward performs better than an equally costly 100 percent‐probability promotion with precise reward. However, the difference is shortened for low value purchases. Furthermore, as the promotion budget increases, the ambiguity effect becomes stronger. As a result, the small‐probability promotion with imprecise reward is preferred to the 100 percent‐probability promotion with precise reward at both low and high budget levels.

Research limitations/implications

The present study provides a starting‐point for further research on how to design an effective marketing promotion program with precise or imprecise promotional rewards at varied probabilities.

Originality/value

This research extends previous research on tensile versus precise prices to the region of very low or small probabilities, enriches the literature on “overweighting of small probabilities,” and also significantly enriches the existing theories on decision making under ambiguity.

Details

European Journal of Marketing, vol. 47 no. 5/6
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 13 November 2009

Richard Ho, Leo Huang, Stanley Huang, Tina Lee, Alexander Rosten and Christopher S. Tang

This paper sets out to present a practical approach to develop an effective customer loyalty program by incorporating competition and heterogeneity in customers' preferences, and…

6592

Abstract

Purpose

This paper sets out to present a practical approach to develop an effective customer loyalty program by incorporating competition and heterogeneity in customers' preferences, and by avoiding the pitfalls associated with different types of loyalty programs.

Design/methodology/approach

To illustrate the approach, the paper presents a case study of T&T Supermarkets in Canada to show how a retailer can develop a cost‐effective customer loyalty program to retain and reward loyal customers so as to increase shopping frequency and shopping expenditure. The approach consists of four major steps, which are explained in detail.

Findings

Most T&T shoppers split their shopping trips at T&T (for Asian groceries and other specialty items) and a major competitor (for Western items). This creates a unique opportunity for T&T to develop a loyalty program that is intended to entice its loyal shoppers to increase their shopping frequency and expenditure at T&T. A “hybrid” reward structure was recommended to address the fact that there are two major segments of customers who prefer different types of loyalty rewards.

Originality/value

In addition to avoiding some common pitfalls of various loyalty programs, this paper presents a practical approach to develop an effective customer loyalty program by incorporating competition and heterogeneity in customers' preferences.

Details

Managing Service Quality: An International Journal, vol. 19 no. 6
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 26 July 2013

Youjae Yi, Hoseong Jeon and Beomjoon Choi

The present study seeks to examine how perceived uncertainty of reward schedule and reward frame (i.e. segregated vs aggregated) affect consumers ' evaluation of loyalty…

2079

Abstract

Purpose

The present study seeks to examine how perceived uncertainty of reward schedule and reward frame (i.e. segregated vs aggregated) affect consumers ' evaluation of loyalty programs.

Design/methodology/approach

The authors conducted three experiments to test the hypotheses.

Findings

Ambiguity aversion was salient when the subjects perceived low uncertainty in the schedule of a loyalty program, which led to customers ' choice of a loyalty program with an aggregated frame. In contrast, the subjects displayed ambiguity proneness when they detected a high level of uncertainty in the reward schedule; as a result, the subjects preferred a loyalty program that employed a segregated frame.

Research limitations/implications

The findings show that individuals adopt different types of attitudinal pattern and show dissimilar choice behaviors depending on reward schemes. The findings also provide insights to enhance the understanding concerning how consumers perceive the value of loyalty programs.

Practical implications

Previous research suggests the importance of random elements in relationship marketing. The present study supports this assertion by demonstrating that reward programs providing unexpected benefits can enhance the effectiveness of a loyalty program.

Originality/value

The results provide a more refined understanding about the relationship between perceived uncertainty and reward frame and the psychological mechanism underlying this relationship.

Details

European Journal of Marketing, vol. 47 no. 8
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 September 2002

Anne de Kerckhove

Looks at ways that marketers can use the ubiquitous mobile phone as a channel to the youth market. Emphasises that children use mobiles in different ways from adults: texting…

2908

Abstract

Looks at ways that marketers can use the ubiquitous mobile phone as a channel to the youth market. Emphasises that children use mobiles in different ways from adults: texting, two‐way interaction and entertainment are more important to them, and marketers have to take this into account. Lists guidelines for effective campaigns: targeting, permission, peer2peer, value added, interactivity, relationship management, simplicity, measurement, fun, and incentives. Outlines legal and moral aspects of mobile marketing to children in the UK context. Ends with case studies: 20th Century Fox’s promotion of “Planet of the Apes” to Vodafone’s consumer base; the Golden Wonder promotion in April 2002 by marketing agency Triangle, using voice recognition; and Sony MiniDisc’s use of text messaging.

Details

Young Consumers, vol. 3 no. 4
Type: Research Article
ISSN: 1747-3616

Keywords

Book part
Publication date: 13 December 2017

Qiongwei Ye and Baojun Ma

Internet + and Electronic Business in China is a comprehensive resource that provides insight and analysis into E-commerce in China and how it has revolutionized and continues to…

Abstract

Internet + and Electronic Business in China is a comprehensive resource that provides insight and analysis into E-commerce in China and how it has revolutionized and continues to revolutionize business and society. Split into four distinct sections, the book first lays out the theoretical foundations and fundamental concepts of E-Business before moving on to look at internet+ innovation models and their applications in different industries such as agriculture, finance and commerce. The book then provides a comprehensive analysis of E-business platforms and their applications in China before finishing with four comprehensive case studies of major E-business projects, providing readers with successful examples of implementing E-Business entrepreneurship projects.

Internet + and Electronic Business in China is a comprehensive resource that provides insights and analysis into how E-commerce has revolutionized and continues to revolutionize business and society in China.

Details

Internet+ and Electronic Business in China: Innovation and Applications
Type: Book
ISBN: 978-1-78743-115-7

1 – 10 of over 1000