The use of coupons delivered by mobile phone, so-called “mcoupons,”
is growing rapidly. In this study, the authors analyze consumer
response to m-coupons for a two-year trial at a large shopping mall.
Approximately 8,500 people were recruited to a panel and received three
text-message m-coupons whenever they “swiped” their mobile phone at
the mall entrances, with downstream redemption recorded. Almost
144,000 m-coupons were delivered during the trial, representing 38
stores that supplied 134 different coupons. The authors find that an
important feature of m-coupons is where and when they are delivered,
with location and time of delivery significantly influencing redemption.
How long the m-coupons are valid (expiry length) is also important
because redemption times for m-coupons are much shorter than for
traditional coupons. This finding suggests that their expiration length
should be shortened to help signal time urgency. Nevertheless,
traditional coupon features, such as face value, still dominate m-coupon
effectiveness, as does the product type, with snack food coupons being
particularly effective.