The effects of situational factors on coupon redemption in hospitality sectors

This study adopted discrete choice modeling to examine the effects of a set of situational factors on consumers' redemption of coupons in five types of food and beverage businesses. We tested the model using a large data set on consumers’ stated preference for coupon redemption in the U.S. while they are put in certain in-vehicle scenarios. Controlling for the socio-demographics of respondents and coupon attributes, we found that almost all situational factors that characterized the in-vehicle scenarios, including weather, temperature, time of driving, and driving companion, have significant effects on the likelihood of coupon redemption. The situational effects were found to be evident and conditional on coupon types. In addition, consumers make reference to the difference between food and beverage when deciding to redeem coupons, suggesting that they also take into account the functionality of consumption in coupon redemption besides coupon types.