A Case Study on Restaurant Online Coupon Redemption Behavior of Resting Customers

Shin, Seo Ho; Shin, Seo Young; Choi, Kyu Wan; Yang, Il Sun

Abstract

The purposes this study were to a) analyze the revisiting ratio of resting customers after issuing online coupons, b) compare the characteristics of coupon redemption customers with non-redemption customers. For this study, the customers of M restaurant who did not revisit during the last 8 months were classified as 'resting customers', totaling 4,052 customers. The online coupons, valid for 9 months, were sent via e-mail to those customers. After that, the data collected from those who redeemed the coupon in September 2006 was utilized. As a result of sending the coupon to 4,052 resting customers, 1,288 customers redeemed the coupon during the study period, showing relatively high redemption ratio (31.6%). The average check of customers with the online coupon was decreased by 22% compared with customers without the coupon, but the party size remained almost the same, 2.6 customers, and also the redemption ratio was increasing as the expiration date of the coupon was approaching. The redemption ratio of female (35.3%) was much higher than male (19.2%), representing higher redemption possibility of the female customers by issuing the coupon. The redemption ratio of the twenties (69.1%) was obviously higher than other age groups. Also, the non-redemption ratio of other groups except the twenties was higher than the redemption ratio. The redemption ratio of low-educated was higher, under college degree (58.6%), college degree (35.4%), and over college degree (16.6%). Following the result of the average visiting frequency of redemption customers during last the 8 months was 4.2, the frequency of non-redemption customers was 9.8. The total average visiting of non-redemption customer was 10.5, and that of redemption customers was 8.6. Customers who visited the restaurant less frequently in the past have higher possibility to revisit after receiving the coupon