The DOI matches its Crossref record.
Competitive Coupon Targeting
Abstract
With the advent of panel data on household purchase behavior, and the development of statistical procedures to utilize this data, firms can now target coupons to selected households with considerable accuracy and cost effectiveness. In this article, we develop an analytical framework to examine the effect of such targeting on firm profits, prices, and coupon face values. We also derive comparative statics on firms' optimal mix of offensive and defensive couponing, the number of coupons distributed, redemption rates, face values, and incremental sales per redemption. Among our findings: when rival firms can target their coupon promotions at brand switchers, the outcome will be a prisoner's dilemma in which the net effect of targeting is simply the cost of distribution plus the discount given to redeemers.
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Citations
Cited by
Acquisti, A., Taylor, C., & Wagman, L. (2016) · Journal of Economic Literature · doi:10.1257/jel.54.2.442 · Cited by 1,283
Dynamic targeted pricing with strategic consumers
Chen, Y., & Zhang, Z. J. (2009) · International Journal of Industrial Organization · doi:10.1016/j.ijindorg.2008.03.002 · Cited by 144
Self-citation
Metadata
- Authors
- Shaffer, G., & Zhang, Z. J.
- Venue
- Marketing Science
- Published
- 1995-11
- Volume
- 14
- Issue
- 4
- Pages
- 395-416
- ISSN
- 0732-2399 (ISSN-L)
- 1526-548X
- OpenAlex
- W2067534308
- Cited by
- 373
- References
- 0
- FWCI
- 1.29
- Type
- journal article
- Language
- en
- Open access
- closed
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- Shaffer, G., & Zhang, Z. J. (1995). Competitive Coupon Targeting. Marketing Science. https://doi.org/10.1287/mksc.14.4.395
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.