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Competition Strategies for Location-Based Mobile Coupon Promotion
| Content Provider | MDPI |
|---|---|
| Author | Xia, Pengcheng Li, Gang Cheng, T. C. E. Shen, Ao |
| Copyright Year | 2021 |
| Description | Location-based service heightens consumers’ shopping convenience. By utilizing spatial flexibility of consumers, retailers can target consumers via location-based mobile coupons (LBMCs) to enhance market performance. Considering the strategies for LBMC promotion for two competing retailers, we find that under different market intensities, only no adoption and symmetric adoption of LBMC promotion are the possible equilibria for the competing retailers at a low marginal targeting cost. Then, we extend our model to consider vertical (quality) differentiation and analyze the implications of adopting LBMC promotion for a superior-quality firm (with higher product valuation) and an inferior-quality firm (with lower product valuation). Mixed strategies for LBMC promotion emerge when firms’ products have different qualities. Our research findings provide useful guidance for managers and marketing practitioners to formulate strategies for targeted LBMC promotion. |
| Ending Page | 3268 |
| Page Count | 21 |
| Starting Page | 3248 |
| e-ISSN | 07181876 |
| DOI | 10.3390/jtaer16070176 |
| Journal | Journal of theoretical and applied electronic commerce research |
| Issue Number | 7 |
| Volume Number | 16 |
| Language | English |
| Publisher | MDPI |
| Publisher Date | 2021-11-22 |
| Access Restriction | Open |
| Subject Keyword | Journal of theoretical and applied electronic commerce research Journal of Theoretical and Applied Electronic Commerce Research Information and Library Science E-commerce Mobile Coupons Location-based Services Game Theory |
| Content Type | Text |
| Resource Type | Article |
