Research on the Design of E-coupons for Directional Marketing of Two Businesses in Competitive Environment
International Journal of Economics, Finance and Management Sciences
Volume 8, Issue 1, February 2020, Pages: 49-56
Received: Feb. 2, 2020;
Published: Mar. 10, 2020
Views 281 Downloads 161
Xiong Keyi, High School, Nanjing Foreign Language School, Nanjing, PR China
Yang Wensheng, School of Economics & Management, Nanjing University of Science & Technology, Nanjing, PR China
With the rapid development of information technology, e-coupons have shown an explosive trend in recent years. One of the biggest benefits of e-coupons is that they can achieve precise marketing, that is, they can push different coupons to different customers. Although the research on coupons has always been a hot topic, the research on e-coupons has gained increasing attention in recent years. With scant attention devoted to the research on the design of coupons for directional marketing, we investigate the design of coupon for two businesses under the competitive environment. For the old customers, the threshold reduction coupons are used, and for the new customers, the instant reduction coupons are used. Aiming at the maximization of the profits of the merchants, a coupon model for new and old customers of two merchants is built in the competitive market environment with Stackelberg games. Finally, taking two merchants with different profit as an example, the influence of competitors on the coupon delivery strategy of merchants is analyzed by Matlab program. The results show that the existence of competitors will force the merchants to further let customer and enlarge the coupon's face value to the maximum value they can bear. Overall, the study sheds light on design of e-coupons under competition and provides managers with a blueprint to improve profits by targeting shoppers with customized coupons.
Research on the Design of E-coupons for Directional Marketing of Two Businesses in Competitive Environment, International Journal of Economics, Finance and Management Sciences.
Vol. 8, No. 1,
2020, pp. 49-56.
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/
) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Lu Song, Research on the strategy of e-coupon delivery based on consumer behavior [D], Master Dissertation of Nanjing University of technology 2018.
Yanqiu Liu, Huina Yue, The model and solution of coupon promotion pricing [J], Journal of Shenyang University of Technology, Vol. 36 No. 2, 2014.
Yinyuan Si, Wensheng Yang, Discrimination pricing and Strategy of competitive enterprises considering consumer transfer cost and coupons [J], Enterprise economy, Issue 8, 2018: 111-118.
Neslin S A, Henderson C, Quelch J. Consumer promotions and the acceleration of product purchase [J]. Marketing Science, 1985, 4 (2): 147-166.
Uri Ben-Zion, Aharon Hibshoosh and Uriel Spiegel, The Optimal Face Value of a Discount Coupon [J], Journal of Economics and Business, 1999, 51: 159-174.
Zhang Ying, Hao Yi-ge, Wang Yan-hua. Pricing model with coupon selling and its solution [J]. Journal of Shenyang University of Technology, 2005, 27 (6): 691-694.
Yumeng Xiao, A study on the influence of the promotion of takeout on consumers' purchase intention [J], Commercial economy, Issue 2, 2018: 57-58.
Jiantong Zhang, Chencheng Fang, The Effects of Historic Behaviors and E – coupon Promotion on Consumer Purchase Decision——Based on an Experimental Study [J], Soft science, Feb. 2017, Vol. 31, No. 2: 109-112.
Niu Yang. The research about coupon distributed mode and pricing of enterprise supply chain and coordination strategy [D]. Chengdu: University of Electronic Science and Technology of China, 2010: 20-23.
Yinyuan Si, Wensheng Yang etc. Research on the strategy of targeted coupon delivery under the dual channel model [J/OL], Industrial Engineering and management, http://kns.cnki.net/kcms/detail/31.1738.T.20190509.1315.026.html.
Yinping Mu, Xiaowo Tang, Yang Niu, Pricing and coordination strategies of supply chain under different discount coupon issuing modes [J], Chinese Management Science, 2011, 19 (6): 48-56.
Fengsen Song, Research on sales strategy from the perspective of channel management -- the optimal pricing model based on Stackelberg game [J], Operation and management, issue 2, 2019: 135-138.
Mikhael Shor, Richard L. Oliver, Price discrimination through online couponing: Impact on likelihood of purchase and profitability [J], Journal of Economic Psychology, 27 (2006): 423-440.
Josep-Lluis Ferrer-Gomila, M. Francisca Hinarejos, Llorenc Huguet-Rotger, A survey on electronic coupons [J], Computers & Security, 77 (2018): 106-127.
Paul Mills, Cesar Zamudio, Scanning for discounts: examining the redemption of competing mobile coupons [J], Journal of the Academy of Marketing Science, (2018) 46: 964-982.
Chun Qiu, Ping Zhao, Mobile coupon acquisition and redemption for restaurants: The effects of store clusters as a double-edged sword [J], Journal of Business Research, 103 (2019) 163-172.