The experiment described was conducted in the period from 1st April to 14th October The data comprised the following information: customer ID, address, e-mail address, shop visit date, purchased services, user or nonuser of cellular phone, service purchase frequency, information about whether customer used DM coupon or not, type of mail submitted. We used only e-mail address registrants for our experiment in A customer received one mailing over a three-month period.
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This coupon contained a 25 per cent discount for hairdressing, including colouring and permanent wave. The first type ordinary mail with discount coupon was the same as the coupons sent in , containing a short message and a discount voucher. These coupons are described below. Customers can access the coupon on the internet site and display it anytime, anywhere by one click and can save it in the data folder of their cell phone rather than the e-mail folder. The coupon contained the name of the shop, the discount rate and the validity of the coupon. The telephone number of the shop is displayed in the mail, allowing customers to dial the number directly.
Certain types of cellular phone limit the number of characters permitted in a mail, so that there may be cases where the message is not displayed in full. The impression of the mail and whether the mail is opened or not will of course depend on the subject, so that the key words of the shop name, discount and coupon were included in the subject of all mail types. Further, the name of the individual customer is used at the beginning of the message to stimulate a sense of personal communication. Each mail has the DM contents as well as the name, telephone number and opening hours of the shop.
The purpose of this experiment is to measure the different effects of the three kinds of mobile DM coupons. It was planned that all customers should receive a DM coupon once every three months. In order to make it comparable to mobile registrants, a comparison in the proportion of age groups represented was made between the entire sample for this research of and the mobile registrants in the sample of our experiment. The following figures show these differences in detail.
Influence on shop visits by availability of DM: There are significant differences among the shop visit probabilities by customers who received three kinds of mobile DM coupon or no coupon. Influence on coupon use by type of DM: There are significant differences among the coupon use probabilities by customers who received three kinds of mobile DM coupon.
Influence on additional purchases by type of DM: There are significant differences among the additional purchase probabilities of customers who received mobile DM coupons. Customers who received mobile DM coupons purchase additional services, for example, permanent ware in addition to hair cut. In order to examine the hypotheses, from H 1 to H 3 , we applied logistic regression models to the customer purchase data. Explanatory variables are as follows:. Age : 15—19, 20—24, 25—29, 30—34 or over 35, unknown.
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Avail : Availability of mobile mail coupons available or not available. Freq : Total number of purchasing hairdressing services before the experiment. Freq : Total number of purchasing hair colouring services before the experiment. Freq : Total number of purchasing permanent wave services before the experiment.
Period : The first 14 days or the rest of the days of a month were grouped into one period, and at the beginning of each period, a mobile DM coupon was sent to each customer. The number of total periods is 13 periods. The shop visits probability of females is higher than that of males. The result appears to imply that female customers who have more interest in hairstyling visit beauty salons more often than male customers.
The shop visits probability of the overyear-olds is higher than that for the under year-olds. Customers over 30 years of age comprise only 7 per cent of all customers, but they seem to be loyal customers and visit the shop very often. By contrast, young customers of 20—24 years visit the shop infrequently and may possibly be using a variety of beauty salons. The shop visits probability of customers who had previously purchased hairdressing services more often before the experiment is significantly higher than that of customers who had purchased the service less often. The same result was obtained in our experiment.
In the same way, the shop visits probability of customers who had purchased permanent service more often before the experiment purchased services of cut is significantly higher that of the counterpart. However, this is not the case with hair colouring. The shop visits probability of customers who received a mobile DM coupon is significantly higher than that of customers who had not received a mobile DM coupon.
This result was not obtained in our experiment. This may be because customers' positive perception of a mobile DM coupon has increased. The type of mobile DM coupon was not statistically significant, possibly because of the sample size. This may be because students had not been around the shop due to the school recess.
This may be a particular characteristic of customers of this shop, who are mostly students. On the other hand, a high shop visits probability was obtained at the end of May and the beginning of June, and the end of July. This research confirmed that mobile DM coupon increased shop visits probability that was not recognised in our experiment. Not all customers who received a mobile DM coupon may use that coupon even if those customers visited the shop. We calculated DM coupon redemption rates for mobile DM receivers and compared the rates among the different types of mobile DM coupon.
In our experiment, the coupon redemption rate for postcard DM coupon receivers was 81 per cent, while for mobile DM receivers it was 36 per cent. This research obtained an average coupon redemption rate for mobile DM receivers of 39 per cent. In addition, we obtained different rates by mail type as follows: 1 ordinary mail: The result shows that the redemption rate for hyperlink mail recorded roughly twice as much as that for the other types, but was still lower than that of 81 per cent for the postcard.
Our MCUP model estimates the probability of mobile DM coupon use by customers who received mobile DM and visited the shop in the coupon effective period. The population was limited to shop visitors who received mobile DM coupons and the total sample size as a result was We might expect that most people who visited the shop use the coupons. Mobile address registrants in particular were considered to have an intention to use mobile DM. The independent variable of Mail.
Avail was not included because all customers received the mail in this sample. After the experiment, we undertook an interview with the shop owner. The result appears to be reasonable if we take this fact into account. The coupon use probability by those customers who had purchased permanent wave services was frequently significantly higher than that of infrequent permanent wave purchasers. An APP model estimates the probability of additional purchases corresponding to hypothesis H 3 by customers who received mobile DM.
The population was limited to coupon users and the total sample size became No dependent variable was rejected at the 5 per cent significance level. Although there were some records of additional purchases with a coupon, we did not find any statistically significant variables. From the results in the Section Shop visits probability model SVP , we can suggest that in relation to the probability of a customer's shop visit, the variables included at the 5 per cent statistical significance level in the final model are as follows: Gender, DM.
Avail DM received or not received , DM. Period, Age, Cut. Freq and Perm.
Since the beauty salon is a real shop and communication with the shop would not cause problems, steps 1 — 2 in the DM process will be easily established. The results in steps 3 information storage, 4 information retrieval and 5 reward experiencing were reported in our customer research. When using the mobile channel for promotional activity, it appears advisable to induce customer responses in as similar a way to those of traditional mechanisms such as postcards as possible to ensure effective mobile promotion. Specifically, we have to achieve 1 a safe encounter with the information, 2 ready acceptance, 3 successful storage by means of some physical action, 4 easier retrieval of the information, supported by easier handling of the mobile device, and 5 assurance in experiencing a promotional reward.
This research confirmed that mobile DM coupons increased shop visits probability, which was not recognised in our experiment, and shows the effectiveness of mobile DM promotion. The success of mobile DM promotion has an important implication in terms of the costs and benefits of promotion. Mobile DM promotion is much less expensive than postcard coupons. This has an important implication: for mobile mail DM coupons to be successful, it is important to let the customer take some action in order to avoid forgetting the mere fact of their receipt.
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Adjustment to different shop visit cycles may also be an important factor in increasing coupon use probability, a dimension that remains worthy of future research. Skip to main content Skip to sections. Advertisement Hide. Download PDF. Stimulating customer response to promotions: The case of mobile phone coupons. Paper First Online: 18 February The characteristics of each method are summarised as follows: Medium : Postcard coupons are printed on paper, while mobile coupons are shown on the display of a mobile phone. Questionnaires on the use of mobile DM coupons The behavioural effects of mobile coupons could not be established by the experiment.
Figure 1 is a graphical representation of the results on questions concerning the properties of two different forms of coupons. Open image in new window. Figure 1 Property of the DM coupon. Changes in customer base The number of recorded customers available to researchers at the end of March in was 1, — an increase from at the end of March in Submission plan for the mobile DM coupon The purpose of this experiment is to measure the different effects of the three kinds of mobile DM coupons.
Table 1 shows a summary of our experimental design: 1 All the registrants were divided into three main groups to receive one of the three different kinds of promotion gender and age were randomly assigned. For example, on 1st April the first group received DM, but none of the other groups would receive any DM coupon in this period.
Then, on 15th April, the second group would receive DM. To the sixth group mobile DM was submitted on 15th June and to the first group again on 1st July. This method ensured that a mobile DM was sent every second week but one customer received a mobile DM coupon only once in three months. Table 1 Mobile DM submission plan. The percentage by age group is shown in Figure 2. The percentage of 20—year-olds is 57 per cent, the highest among the group and not so much different from 60 per cent in This is because that the store is located near a university and the core customers are students.
The proportion of males changed from 38 per cent in to 43 per cent in Our data suggest that the highest frequency of haircuts by customers was once in two weeks, so we decided to have two observation periods in one month.
There were visits among 6, observations 4. Out of 2, observations, the visit rate of customers who received mobile DM coupons was 5. Figure 2 Percentage comparison of age groups between the sample of and Therefore, the effect of mobile DM coupon seems to be recognised. Additionally, the visit rates of both groups tended to decline as time passed, yielding similar trends to that in our experiment. From these preliminary analyses of the experiment, we perceived that customers did respond to mobile DM coupons well Figure 3. Figure 3 Visit rates of mobile DM receivers vs nonreceivers.
For the probability of beauty salon visits, the behavioural effectiveness of mobile coupons was measured among all customers, but the probability of coupon use was measured only among customers who received DM coupons and visited the shop. For additional purchases, it was measured only among customers who received DM coupons, visited the shop and used the DM coupon. The following three hypotheses were established for statistical tests corresponding to the three probabilities: H 1 : Influence on shop visits by availability of DM: There are significant differences among the shop visit probabilities by customers who received three kinds of mobile DM coupon or no coupon.
H 2 : Influence on coupon use by type of DM: There are significant differences among the coupon use probabilities by customers who received three kinds of mobile DM coupon. The journal explores symbolic logic and foundations of mathematics relevant to the philosophy and methodology of science; and those facets of the ethics, history and sociology of science which are important for contemporary topical pursuits.
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