Scanning for discounts: examining the redemption of competing mobile coupons

Coupons research has typically focused on single-coupon redemption, with scant attention devoted to multiple, competing coupons. to bridge this gap, we observe supermarket shoppers who used their smartphones to scan products in-store, receiving both coupons for the scanned product and several others as a result. we model the determinants of redemption in this context, particularly net price range (npr), coupon value, brand loyalty, and number of coupons. latent class analysis uncovers two consumer segments: brand-focused shoppers (79.9%), who use internal reference prices, and deal-prone shoppers (20.1%), who use stimulus-based reference prices. targeting by means of segment membership, npr, and loyalty is indispensable: the same $0.50 coupon can have a redemption probability as low as 30% and as large as 80%, depending on these characteristics. overall, the study sheds light on drivers of redemption under competition and provides managers with a blueprint to improve redemption rates by targeting shoppers with customized coupons.