On customer-centric marketing with internet coupons

• Main Authors: Espinosa, Alice M., Tan, Kristine Valerie L.
• Format: text
• Language: English
• Published: Animo Repository 2009
• Subjects: Internet marketing; Sales promotion; Coupons (Retail trade); Advertising; Mathematics
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/5225
• Institution: De La Salle University

Firms have found the internet to be an effective tool for them to understand their consumers better. In line with this, internet coupons flourished as a valuable marketing strategy. A detailed analysis of the different internet coupon distribution models was discussed in the paper as well as each model's effect on the firm's optimal profit. In this paper, it was shown that the no-coupon strategy works better than mass distribution of internet coupons given that the firm has no customer-centric information system. This is because the absence of which only caused the firm to generate less profit than what the no-coupon strategy offers. The targeted internet coupon distribution was discussed as well as its two types, the fixed face value internet coupons and the changing face value internet coupons. The conditions where the latter produces more profitability for the firm than the first were computed. The advancement of customer-centric information systems were also shown to be a cause for the firm to charge higher price.