Manufacturer-retailer Promotion Competition: Customisation Of
Coupon Target Selection
Author(s)
W. Buckinx & D. Van den Poel
Abstract
Manufacturer-retailer promotion competition:
customisation of coupon target selection
W. Buckinx & D. Van den Poel
Ghent University, Dept. of Marketing, Belgium
Abstract
The management of coupon promotions is an important issue since it is still one
of the major promotion media. Although new distribution channels arise, the
allocation of coupons does not go without problems. Companies are investing
thoroughly in an attempt to convince as many customers as possible to buy their
products. This results in a competitive battle between retailers and manufacturers
since both target the same customer base. In this paper the methodology used by
retailers and manufacturers to determine their target selection for promotional
actions is improved by building separate predictive models for the same
customer base. One model makes predictions concerning the redemption
behavior of promotions that are distributed by the retailer while another model
does the same for promotions issued by manufacturers. A logisti
Keywords
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