LAUSR

Abstract While smartphones have become an important distribution channel for coupons, store clusters still play a pivotal role in retailer operations; nevertheless, many questions remain unanswered as to the extent to which store clusters affect a store's promotional outcome in the era of mobile technology. This paper investigates how store clusters, as shopping centers, affect mobile coupon acquisition and redemption. The study identifies store clusters as a “double-edged” sword, affecting coupon acquisition and redemption in an opposing way. Specifically for a focal store both a higher density of shopping centers around, and a closer distance to the nearby shopping center results in a higher coupon acquisition but a lower coupon redemption rate. The results are robust. This paper also investigates the impact of coupon features on coupon acquisition and redemption, as well as the moderating effects of store clusters on coupon features. Finally, this paper offers several managerial implications on mobile coupon promotions.