1. Introduction
As the number of smartphone users increases, marketing campaigns employing mobile
phone technology are receiving more attention from the marketers than ever before.
Mobile phones have attracted the attention of marketing practitioners and scholars not only because of the enhanced mobility and immediacy of the medium but also because
of the personal nature of mobile phones (Dickinger and Kleijnen, 2008; Bacile and
Goldsmith, 2011). These unique characteristics of mobile phones make them an effective
business communication tool to reach consumers. As a result, mobile coupons, coupons
consumers receive electronically via mobile devices to redeem at retail stores, have
become one of the fastest growing promotion methods for retailers. The industry
interpreted the positive responses of consumers to mobile coupons to date as a sign
of increasing receptivity to this communication modality. In a multi-national survey
conducted on mobile coupon usage in 2010, 73 percent of smartphone (a mobile phone
with advanced functionality and connectivity to the internet) users reported
downloading mobile coupons in a retail store and 79 percent of smartphone users
think mobile coupons are useful for them (Mansfield, 2010). Another consumer survey
on mobile marketing also revealed the growing influence of mobile phones on
consumers’ lifestyle and shopping behavior. The report highlighted consumers’ interest
in mobile coupon usage. About 38 percent of consumers expressed interest in receiving
mobile coupons, which is a significant increase from 18 percent of the 2009 survey
(Hipcricket, 2010). However, the actual acceptance and usage of mobile coupons has not
been as prevalent as these statistics would lead one to believe. Previous research has
concluded that the consumer’s acceptance is the biggest barrier to the success of mobile
coupon promotion (Scharl et al., 2005) and investigated ways to improve adoption rate
(Bacile and Goldsmith, 2011)