Mobile couponing. Retailers are increasingly using mobile
couponing as a key marketing tactic. Mobile coupons are
gaining rapid consumer acceptance and are providing retailers
with high returns on investment (ROI) (Dickinger and Kleijnen
2008). Typically, a retailer invites consumers through other
media (e.g., in-store, print media, outdoor media) to send a text
message to the retailer, asking for mobile coupons. The retailer
then sends to those who had responded, mobile coupons can
be redeemed at the retailer's stores at the time of purchase.
This couponing tactic is generally effective because consumers
self-select the offering. Moreover, the returns are directly
measurable. Because the costs of such a couponing tactic
are modest, the net returns tend to be high as well. Importantly,
the retailer gets to expand its database of customers who can
be targeted for future offers. Despite these benefits, a major
drawback of mobile couponing is that it inadvertently sensitizes
customers to coupons, potentially eroding the equities of
the couponed brands.