The acceptance by age group to redeem a casual dining restaurant electronic coupon, delivered to a cell phone, in the United States

1
The acceptance by age group to redeem a casual
dining restaurant electronic coupon, delivered to
a cell phone, in the United States

• Ed Jennings
• March 22, 2008

2
Introduction and Background

• Electronic relationship marketing creates the
  opportunity to share real-time promotional
  information between the buyer and seller (Tiago,
  Couto, Natario, Braga, 2007).
• Electronic direct marketing of coupons can
  transition from traditional direct mail to
  electronic delivery via the cell phone.

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Problem Statement

• This quantitative study will determine if casual
  dining restaurants can attract more users by age
  group, with electronic coupons delivered to a
  cell phone than traditional printed direct mail
  (Liljandler, Polsa, Forsberg, 2007).

4
Purpose of the Study

• This quantitative study will examine the
  willingness of people between 18 and 65 years of
  age, in the United States, who own cell phones,
  to receive electronic consumer coupons and redeem
  the electronic coupons in a casual restaurant
  dining environment (Tiago, Couto, Natario, and
  Braga, 2007).

5
Significance of the Study

• Loyalty programs that use direct mail
  promotions of consumer products and services are
  part of the traditional marketing mix.
• The wide acceptance of cell phones with data
  capability, will add new ideas for businesses to
  deliver real-time promotions at a fraction of the
  cost of current printed direct mail.

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Research Questions/Hypotheses

• Is there a correlation to the age group and
  usage of casual restaurant electronic coupons
  delivered to the cell phone?
• Are recipients of casual restaurant electronic
  coupons likely to redeem the electronic coupons
  (EC) if the ECs can be stored on the cell phone
  for later use?

7
Theoretical Framework

• The theoretical framework of this study will
  examine the customer relationship management
  acceptance of electronic coupons, delivered to
  cell phone users of different age groups, applied
  to the vertical segment of casual dining, in the
  United States.

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Scope of the Study

• Customer relationship marketing has been
  discussed in terms of providing on-going value
  and satisfaction to users (Hair, Bush Ortinau,
  2003).
• United States consumers of casual dining who own
  cell phones, will be studied to understand the
  willingness to accept and use electronic coupons.

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Limitations and Delimitations

• The external limitations of cell phones to
  receive, store, and present an electronic coupon.
• The feeling of security by the user who knows
  that a consumer company collects profile
  information on the subject.
• The abandonment rate of electronic coupons over
  time, if relevant offers are not received by the
  user.

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Summary and Conclusion

• Technology offers a new way of delivering an
  existing service in the form of electronic
  coupons to portable communication devices at a
  fraction of the printed cost.
• An Internet survey with screen shots and
  descriptions of the service is planned to reach
  the intended audience.

11
References

• Hair, Bush, Ortinau. (2003). Marketing
  research Within a changing environment. Boston
  McGraw Hill/Irwin.
• Liljandler, V., Polsa, P., Forsberg, K.
  (2007). Do mobile CRM services appeal to loyalty
  program customers? International Journal of
  E-Business Research, 3, 24-39. Retrieved November
  10, 2007, from www.proquest.com
• Tiago, M., Couto, J., Natario, M., Braga, A.
  (2007). International reality of Internet use as
  marketing tool. Journal of American Academy of
  Business, Cambridge, 11, 138-145. Retrieved
  November 7, 2007, from www.proquest.com