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

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