Coupon promotion and its cross-channel effect in omnichannel retailing industry: A time-sensitive strategy
International Journal of Production Economics(2023)
摘要
An increasing number of retailers are allowing consumers to freely switch between online and offline and conducting coupon promotions to stimulate channel transfer. This paper develops a stylized model to investigate omnichannel coupon promotion strategies considering consumers' time sensitivity in redeeming coupons. This paper first explores the benchmark model where consumers show time-insensitive and then takes consumers’ time sensitivity into account. For each model, three coupon promotion scenarios are studied, namely, online promotion, offline promotion, and online and offline co-promotion. Results show that whether the omnichannel retailer has the motivation to provide online or offline coupons depends on retail price—a higher retail price leads to a stronger promotion motivation, thereby achieving profit improvement. Results also indicate that the retailer may derive fewer profits in a co-promotion scenario than in a unilateral promotion scenario if there is too much channel switching or coupon promotion for a specific channel is intense. This study further reveals that in a unilateral promotion scenario, the retailer is less enthusiastic to provide coupons in a time-sensitive case than in a time-insensitive case, and the opposite happens in a co-promotion scenario when the time value and time consumed in redeeming coupons are high. Even though, the retailer derives higher profits in the time-sensitive case within specific conditions. The extension model verifies the robustness of the model and further reveals that a high online perceived value leads to a weak online promotion and a strong offline promotion. The retailer is more likely to increase profit in a time-sensitive case than in a time-insensitive case when online perceived value is high.
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关键词
Omnichannel operation,Channel switching,Coupon promotion,Time sensitivity
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