Research on the Design of E-coupons for Directional Marketing of Two Businesses in Competitive Environment

Xiong Keyi; Yang Wensheng

doi:doi:10.11648/j.ijefm.20200801.16

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Research on the Design of E-coupons for Directional Marketing of Two Businesses in Competitive Environment

Xiong Keyi, Yang Wensheng

Published in International Journal of Economics, Finance and Management Sciences (Volume 8, Issue 1)

Received: 2 February 2020 Accepted: Published: 10 March 2020

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Abstract

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.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 8, Issue 1)
DOI	10.11648/j.ijefm.20200801.16
Page(s)	49-56
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Consumer Behavior, Targeted Marketing, E-coupon, Launch Strategy, Game Theory

References

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[2]	Yanqiu Liu, Huina Yue, The model and solution of coupon promotion pricing [J], Journal of Shenyang University of Technology, Vol. 36 No. 2, 2014.
[3]	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.
[4]	Neslin S A, Henderson C, Quelch J. Consumer promotions and the acceleration of product purchase [J]. Marketing Science, 1985, 4 (2): 147-166.
[5]	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.
[6]	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.
[7]	Yumeng Xiao, A study on the influence of the promotion of takeout on consumers' purchase intention [J], Commercial economy, Issue 2, 2018: 57-58.
[8]	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.
[9]	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.
[10]	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.
[11]	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.
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[15]	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.
[16]	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.

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APA Style

Xiong Keyi, Yang Wensheng. (2020). Research on the Design of E-coupons for Directional Marketing of Two Businesses in Competitive Environment. International Journal of Economics, Finance and Management Sciences, 8(1), 49-56. https://doi.org/10.11648/j.ijefm.20200801.16

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ACS Style

Xiong Keyi; Yang Wensheng. Research on the Design of E-coupons for Directional Marketing of Two Businesses in Competitive Environment. Int. J. Econ. Finance Manag. Sci. 2020, 8(1), 49-56. doi: 10.11648/j.ijefm.20200801.16

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AMA Style

Xiong Keyi, Yang Wensheng. Research on the Design of E-coupons for Directional Marketing of Two Businesses in Competitive Environment. Int J Econ Finance Manag Sci. 2020;8(1):49-56. doi: 10.11648/j.ijefm.20200801.16

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@article{10.11648/j.ijefm.20200801.16,
  author = {Xiong Keyi and Yang Wensheng},
  title = {Research on the Design of E-coupons for Directional Marketing of Two Businesses in Competitive Environment},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {8},
  number = {1},
  pages = {49-56},
  doi = {10.11648/j.ijefm.20200801.16},
  url = {https://doi.org/10.11648/j.ijefm.20200801.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20200801.16},
  abstract = {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.},
 year = {2020}
}

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TY  - JOUR
T1  - Research on the Design of E-coupons for Directional Marketing of Two Businesses in Competitive Environment
AU  - Xiong Keyi
AU  - Yang Wensheng
Y1  - 2020/03/10
PY  - 2020
N1  - https://doi.org/10.11648/j.ijefm.20200801.16
DO  - 10.11648/j.ijefm.20200801.16
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 49
EP  - 56
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20200801.16
AB  - 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.
VL  - 8
IS  - 1
ER  -

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Author Information

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

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Plain Text BibTeX RIS

APA Style

Xiong Keyi, Yang Wensheng. (2020). Research on the Design of E-coupons for Directional Marketing of Two Businesses in Competitive Environment. International Journal of Economics, Finance and Management Sciences, 8(1), 49-56. https://doi.org/10.11648/j.ijefm.20200801.16

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ACS Style

Xiong Keyi; Yang Wensheng. Research on the Design of E-coupons for Directional Marketing of Two Businesses in Competitive Environment. Int. J. Econ. Finance Manag. Sci. 2020, 8(1), 49-56. doi: 10.11648/j.ijefm.20200801.16

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AMA Style

Xiong Keyi, Yang Wensheng. Research on the Design of E-coupons for Directional Marketing of Two Businesses in Competitive Environment. Int J Econ Finance Manag Sci. 2020;8(1):49-56. doi: 10.11648/j.ijefm.20200801.16

Copy | Download

@article{10.11648/j.ijefm.20200801.16,
  author = {Xiong Keyi and Yang Wensheng},
  title = {Research on the Design of E-coupons for Directional Marketing of Two Businesses in Competitive Environment},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {8},
  number = {1},
  pages = {49-56},
  doi = {10.11648/j.ijefm.20200801.16},
  url = {https://doi.org/10.11648/j.ijefm.20200801.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20200801.16},
  abstract = {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.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Research on the Design of E-coupons for Directional Marketing of Two Businesses in Competitive Environment
AU  - Xiong Keyi
AU  - Yang Wensheng
Y1  - 2020/03/10
PY  - 2020
N1  - https://doi.org/10.11648/j.ijefm.20200801.16
DO  - 10.11648/j.ijefm.20200801.16
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 49
EP  - 56
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20200801.16
AB  - 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.
VL  - 8
IS  - 1
ER  -

Copy | Download