Author(s)

Xiaohong Liu, Wensheng Yang

Corresponding Author

Xiaohong Liu

ABSTRACT

We conduct a systematic study for online marketing based on e-commerce platforms (online shops) to test several major electronic coupon distribution models. We show that mass distribution of e-coupons without customer information will eliminate the price discrimination effect. We analyze the pattern of issuing Internet coupons based on past customer purchase information, including fixed face value and changing face value. We have found that with the reduction of costs of consumer profiling, it is higher of product price for merchants. In terms of commodity price and market share, changing face value is better than fixed when the accuracy of consumer analysis reaches a certain standard.

KEYWORDS

E-coupons, customer information, fixed face value, changing face value