Factors influencing coupon redemption in direct marketing campaigns in the South African retail market

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Dlamini_Factors_2024.pdf (854.3 KB)
Date
2023
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Publisher
University of the Witwatersrand, Johannesburg
Abstract
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.
Description
A research article submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfillment of the requirements for the degree of Master of Business Administration Johannesburg, 2023
Keywords
Coupons, Redemption, Consumers, Retail, UCTD
Citation
Dlamini, Reagan Wonder. (2023). Factors influencing coupon redemption in direct marketing campaigns in the South African retail market[Master’s dissertation, University of the Witwatersrand, Johannesburg]. WireDSpace.https://hdl.handle.net/10539/41647
URI
https://hdl.handle.net/10539/41647
Collections
Electronic Theses and Dissertations (Masters/MBA)