Browsing by Author "Dlamini, Reagan Wonder"

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Factors influencing coupon redemption in direct marketing campaigns in the South African retail market
(University of the Witwatersrand, Johannesburg, 2023) Dlamini, Reagan Wonder; Qwaye, Emmanual
Coupons are discounts offered by businesses to drive consumers to buy specific products or services. Companies continue to invest in coupons as a marketing tool however, the redemption of these coupons remain extremely low at around 2% mainly due to little being known about the factors that influence coupon redemption. This study focuses on identifying factors influencing coupon redemption within the South African retail industry. Secondary data was collected from one of the South African retail companies. The data consisted of consumers that the retailer had targeted with a coupon campaign during the period June 2020 to June 2021. A Quantitative method was used where a set of independent variables from demographics, consumer behaviour and coupon design were identified and analysed to understand their influence on coupon redemption. The study finds that factors such as offering coupons that are redeemable in a wider range of products, targeting consumers that have shown previous redemption behaviour and offering a deeper discount increases coupon redemption. While, offering coupons on a product where a consumer has never spent or has low spending behaviour, framing coupons in percentages as well as sending more coupons to a consumer at the same time decreases coupon redemption.