Promotional Design for Small Businesses: The Operational Value of Online Deals

@inproceedings{Li2021PromotionalDF,
  title={Promotional Design for Small Businesses: The Operational Value of Online Deals},
  author={Siming Li and Kejia Hu and Martin A. Lariviere},
  year={2021}
}
Among the limited ways for small service providers to balance demand and supply, launching temporary consumer offer may be attractive. However, relatively little work has empirically examined whether and how such offers pay off service providers. In this paper, using a comprehensive dataset from two leading deal platforms in China, we empirically study a new business model: the online deal. Service providers, who face predictable demand swings and capacity constraints, launch online deals for… 
Data-Driven Approaches to Targeting Promotion E-Mails: The Case of Delayed Incentives
This paper empirically investigates using the e-mail channel to target customers with a delayed incentive promotion — specifically, gift card promotion — and derives data-driven e-mail targeting

References

SHOWING 1-10 OF 46 REFERENCES
Social coupons as a marketing strategy: a multifaceted perspective
Social coupons are fast emerging as a popular marketing tool for businesses, an attractive shopping tool for consumers using them and a profitable business model for the social coupon service
Tackling the Retailer Decision Maze: Which Brands to Discount, How Much, When and Why?
We propose a model that seeks the optimal timing and depth of retail discounts with the optimal timing and quantity of the retailer's order over multiple brands and time periods. The model is based
The Operational Advantages of Threshold Discounting Offers
TLDR
A calibrated numerical study shows that threshold discounting improves firm profits over a traditional approach by as much as 33% 7% on average, and can be harmful in situations with chronically low demand.
Group-Buying Deal Popularity
Group-buying (GB) deals entail a two-phase decision process. First, consumers decide whether to buy a deal. Second, they decide when to redeem the deal, conditional on purchase. Guided by theories of
The Impact of Linear Optimization on Promotion Planning
TLDR
This paper developed an optimization formulation for the POP that can be used by category managers in a grocery environment that incorporates business rules that are relevant, in practice, and proposes general classes of demand functions including multiplicative and additive that incorporate the post-promotion dip effect.
The Role of Surge Pricing on a Service Platform with Self-Scheduling Capacity
TLDR
It is concluded that all stakeholders can benefit from the use of surge pricing on a platform with self-scheduling capacity, and as labor becomes more expensive, providers and consumers are better off with surge pricing.
A Decision Support System for Planning Manufacturers' Sales Promotion Calendars
A common event in the consumer packaged goods industry is the negotiation between a manufacturer and a retailer ofthe sales promotion calendar. Determining the promotion calendar involves a large
To Groupon or Not to Groupon: The Profitability of Deep Discounts
We examine the profitability and implications of online discount vouchers, a relatively new marketing tool that offers consumers large discounts when they prepay for participating firms’ goods and
Threshold Effects in Online Group Buying
TLDR
This empirical study uses a data set that records the intertemporal cumulative number of sign-ups for group-buying deals in 86 city markets covered by Groupon during a period of 71 days when Groupon predominantly used "a deal a day" format for each local market and posted the number ofsign-ups in real time.
...
...