Modeling the impact of Internet technology on marketing [electronic resource] : by Kutsal Dogan.

by Dogan, Kutsal.

ABSTRACT: This dissertation, to the best of our knowledge, is among the first to address Internet coupons. The aim is to develop an analytical framework to investigate how Internet coupons can be used to target consumers and efficiently price discriminate to improve a firm's profit. First, Salop's spatial model is modified to represent conventional paper coupons. The model created in this study for conventional paper coupons contributes to the coupons literature in general and has distinct features that separate it from the previous models proposed in the literature. A firm's problem to determine the optimal price, the optimal coupon face value, and the optimal coupon distribution intensity (fraction of consumers who get a coupon) with a conventional paper coupon is solved. Second, we look at Internet coupons and examine a fixed face value coupon model first. In an alternative model, a different kind of couponing model with a distinct feature, changing face value, is introduced.