讲座：Free vs. Pay a little: Trivial-priced Coupon and Consumer Conversion Behavior 发布时间：2023-09-15
题 目：Free vs. Pay a little: Trivial-priced Coupon and Consumer Conversion Behavior
嘉 宾：Zhengyu Shi（史正煜）, Ph.D. Candidate, University of Hong Kong
主持人：张铄 助理教授 上海交通大学安泰经济与管理学院
地 点：上海交通大学 徐汇校区 安泰经济与管理学院A305
The digitalization of marketing channels breeds new forms of coupon promotions. Instead of offering cash coupons for free, firms now sell them at trivial, but non-zero, prices. This research examines the effectiveness of the tactic of trivial-priced coupons - coupons that are sold at trivial prices – compared to the traditional tactic of free coupons. Specifically, it proposes that trivial-priced coupons (vs. comparable free coupons) increase consumers’ perceived coupon deal value by facilitating cost-benefit analysis, which in turn increases coupon conversion behaviors. This research underscores the external validity and managerial implications by demonstrating that trivial-priced coupons increase actual coupon conversion rates and spending in field settings (Field Experiments 1 and 2). Three laboratory experiments then provide converging evidence on the effect and the underlying mechanism of perceived coupon deal value. Aside from mediation evidence, the experiment shows that the effect of trivial-priced coupons on coupon conversion behavior attenuates when people focus on the actual saving of the price promotion. Lastly, the positive impact of trivial-priced coupons holds for both amount off and percent off coupons. This research contributes to the price promotion literature by discovering how paying a trivial price for a coupon affects conversion behaviors differentially from acquiring a free coupon. In the meantime, this research also provides actionable managerial implications for practitioners.