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Can Coupon Holding Duration and Message Framing Increase the Effect of Push Notifications on Mobile Coupon Redemption? Evidence from A Randomized Field Experiment

  • Soonki Hwang (Onestore Corporation) ;
  • Jai-Yeol Son (Information Systems, Yonsei University) ;
  • Sunju Park (Operations, Decisions and Information, School of Business, Yonsei University) ;
  • Kil-Soo Suh (Information Systems, Yonsei University)
  • Received : 2023.03.22
  • Accepted : 2023.07.18
  • Published : 2023.09.30

Abstract

We propose a mobile coupon strategy designed to increase the effect of push notifications on redemption. The proposed strategy recommends that firms deliver mobile coupons with distant expiration dates and remind them through push notifications framed negatively once these expiration dates become imminent, rather than frequently sending coupons with near expiration dates. We test the effectiveness of the proposed strategy using data collected through a randomized field experiment. The findings indicate that push notifications enhance coupon redemption rates for coupons that are held longer by customers than those that are recently received. Additionally, we found that sending negatively framed push notification messages to remind customers of imminent coupon expiration dates further resulted in higher coupon redemption rates. The findings can be employed to offer useful guidance on how to effectively design mobile coupons for achieving higher redemption rates.

Keywords

References

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