This was a graduate project for my Market Research class. We were asked to find the value in digital coupons for a potential business as well as collect consumer data.

1. how digital couponing can work for you.

2. Outline
• Introduction
• Industry Analysis
• Marketing Research Problem and Research
Questions
• Hypotheses
• Research Methods
• Analysis
• Results
• Implications

5. FIVE reasons digital coupons matter right now!
 Economic recession and slow recovery, means
couponing is here to stay!
 Saving is becoming an expected behavior among
Saving $$$ most Americans.
 Newspaper readership is on the decline.
Newspaper  Smartphone penetration is increasing.
 The internet has become a key part of our daily
lives.

6. From a consumer perspective, social coupons are:
An excellent shopping tool, providing heavily
discounted deals
Motivating consumers to try
NEW!product/service offerings
To interact, share ideas, and provide feedback
To show support for the company to others
For fun or entertainment

7. Industry Analysis
exploratory
•US spending on deals will hit nearly $2 billion this year and will
rise to $4.1 billion by 2015.
•74% of respondents claimed to search multiple coupon sites
every week - Bing and Impulse Research
•Grouponwas the industry pioneer, however there is a long list
of other deal services:
• Living Social
• Scoutmob
• Bloomspot
• Yelp, Facebook, Yahoo, Open Table, and Amazonlocal.
•Low Barriers to entry
•3 R’s: Retention, Redemption, Respond
•Yelp reviews that mention having used a coupon have a
strikingly lower rating score than those that do not.

9. Marketing Problem
To determine what drives digital coupon usage
from a consumer perspective by examining:
• What contributes to consumers using deals?
• What contributes to their overall experience?
• Does brand loyalty has an effect on
consumers’ digital site preference?

10. Research Questions
The goal of this research is to answer the following questions:
1. What drives consumers to use digital coupons?
• Do social networks affect which digital coupon service customers use ?
• Does mobile redemption affect which digital coupon deal site consumers
use?
• Do consumers preferences affect whether or not they use digital coupons?
• Do consumer preferences affect which digital coupon services a consumer
uses?
2. What drives consumers to not use digital coupons?
• Do demographics affect whether or not a consumer uses a digital coupon?
3. How does digital coupon usage affect a business?
• Does using a digital coupon at a place that you’ve used before affect
consumers’ overall experience with digital coupons?
• Does consumer used which category of business before affect consumers’
overall experience with digital coupons?
• Do consumers view the business differently if they utilize social couponing?

11. Hypotheses
1-1 Do social networks affect which digital coupon service customers use ?
Ho: usage of different types of social network sites has no effect on digital coupon deal sites
which consumer use
Ha: usage of different types of social network sites has effect on usage of digital coupon
deal sites which consumer use
1-2 Does mobile redemption affect which digital coupon deal site consumers use?
Ho: usage of mobile redemption has no effect on digital coupon deal sites which consumer
use
Ha: usage of mobile redemption has effect on digital coupon deal sites which consumer use
1-3 Do consumers preferences affect whether or not they use digital coupons?
Ho: consumers’ preference has no effect on usage of digital coupon
Ha: consumers’ preference has effect on usage of digital coupon
1-4 Do consumer preferences affect which digital coupon services a consumer uses?
Ho: consumers’ preference has no effect on digital coupon deal sites which consumer use
Ha: consumers’ preference has effect on digital coupon deal sites which consumer use

12. Hypotheses
2-1 Do demographics affect whether or not a consumer uses a digital coupon?
Ho: demographics has no effect on usage of digital coupon
Ha: demographics has effect on usage of digital coupon
3-1 Does using a digital coupon at a place that you’ve used before affect consumers’ overall experience with digital
coupons?
Ho: prior to using the deal, consumers have purchased from business has no effect on consumers’ overall experience
on using digital coupon
Ha: prior to using the deal, consumers have purchased from business has effect on consumers’ overall experience on
using digital coupon
3-2 Does consumer used which category of business before affect consumers’ overall experience with digital coupons?
Ho: consumers used which category of business before has no effect on consumers’ attitude toward the businesses
Ha: consumers used which category of business before has effect on consumers’ attitude toward the businesses
3-2 Do consumers view the business differently if they utilize social couponing?
Ho: businesses utilizing digital coupon has no effect on consumers’ attitude toward the businesses
Ha: businesses utilizing digital coupon has effect on consumers’ attitude toward the businesses

13. Research Methods
Executive
Primary Interview
Data
Data Analysis
Methods
Secondary Academic
Journals &
Data Survey Data

14. Analysis
• DV & IV Table

15. Analysis
• Types of analysis:
• Frequency Distributions
• Comparison of Means
– T-test
–Chi-Square tests
• Comparison of Proportions
• Regression Analysis

16. RESULTS

17. Insights from Scoutmob
Main Concepts from Interview with Liza Dunning
“Improve the mobile app and the
product as well as add excitement to
the brand”
“Maintaining the Future plans to reward
trustworthiness of its loyalty
brand is one of the
company’s primary Category
objectives” preferences are
not uniform:
Restaurants are
seen as the
A trend of retail sustaining
successes within element for
the app as well Scoutmob
Creative coupon design was part of a larger concept to have
consumers use Scoutmob’s mobile app, products and editorial
as a part of their lifestyle

18. Secondary Research
Daily Deals: Prediction, Social Diffusion, and Reputational
Ramifications
Do Facebooklikes correlate with the final deal size and whether the data
appears consistent with current models for the effects of social networks of
buying decisions?
Must be careful not to conflate correlation and causation; it is not clear that likes
inspire purchases, even if the number of likes and deal sizes are correlated.
Deals with approximately the same number of likes can vary significantly in
terms of final deal size

19. Secondary Research
Daily Deals: Prediction, Social Diffusion, and Reputational
Ramifications
The average month over month growth in number of reviews for deals prior to
Groupon offers is about 5% while the average percentage increase in reviews the
month after the groupon is 84%.
DuringAfter the Deal: On average, the number of user contributed reviews
increases significantly and based on the proportion mentions, the group deal
appears to be the proximate cause.
Yelp reviews mentioning either keyword (groupon or coupon) are associated with
star ratings that are 10% lower on average than reviews that do not

20. 1-1 Do social networks affect which digital
coupon service customers use?
• Ho: usage of different types of social network sites has no effect on digital coupon
deal sites which consumer use
• Ha: usage of different types of social network sites has effect on usage of digital
coupon deal sites which consumer use
R2=0.14
95% of confidence

21. 1-1 Do social networks affect which digital
coupon service customers use? (contd.)
People Who Use Deals
90 39%
80
70
60
50 19%
88 17% 17%
40 % of Total
Sites
30
# of Users
20 43 39 37 4% 2%
10 1%
8 5 3
0
People Who Don't Use Digital Coupons
30
49%
25
20
15 24% % of Total
10 Sites
12%
10% # of Users
5 4%
0% 2%
0

22. 1-2 Does mobile redemption affect which digital
coupon deal site consumers use?
• Ho: usage of mobile redemption has no effect on digital coupon deal sites which
consumer use
• Ha: usage of mobile redemption has effect on digital coupon deal sites which
consumer use
• 56% of Digital Coupons Used were redeemed via Mobile
R2=0.21
95% of confidence
Used Mobile Redemption
ScoutMob
29%
Rest.com
38%
IDK
HalfOff
12%
Living Social
6% 8%
8%
Groupon

23. 1-3 Do consumers preferences affect whether or
not they use digital coupons?
• Ho: consumers’ preference has no effect on usage of digital coupon
• Ha: consumers’ preference has effect on usage of digital coupon
R2=0.39
95% of confidence

24. 1-3 Do consumers preferences affect whether or
not they use digital coupons? (contd.)
People Who Use Deals
90 18%
80 15% 16%
70 11% 12%
60 10% 10%
50
89 82 6%
40 76
30
51 51 57 61 % of all Pref
20 Categories
32
10 # Responses
0
People Who Don't Use Digital Coupons
20 19% 19%
15 13% 14%
12% 11%
10 19 8% 19
13 12 14 5% % of all
5 11
8 Pref
5
0
Categories

25. 1-4 Do consumer preferences affect which
digital coupon services a consumer uses?
• Ho: consumers’ preference has no effect on digital coupon deal sites which
consumer use
• Ha: consumers’ preference has effect on digital coupon deal sites which consumer
use
R2=0.11
95% of confidence

26. 1-4 Do consumer preferences affect which
digital coupon services a consumer uses?
• Ho: consumers’ preference has no effect on digital coupon deal sites which
consumer use
• Ha: consumers’ preference has effect on digital coupon deal sites which consumer
use
R2=0.12
95% of confidence

27. 1-4 Do consumer preferences affect which
digital coupon services a consumer uses?
• Ho: consumers’ preference has no effect on digital coupon deal sites which
consumer use
• Ha: consumers’ preference has effect on digital coupon deal sites which consumer
use
R2=0.10
95% of confidence

28. 2-1 Do demographics affect whether or not a
consumer uses a digital coupon?
• Ho: demographics has no effect on usage of digital coupon
• Ha: demographics has effect on usage of digital coupon
R2=0.13
95% of confidence

29. 2-1 Do demographics affect whether or not a
consumer uses a digital coupon? (Cont.)
• Ho: Consumer’s gender has no effect on usage of social coupon deal
• Ha: Consumer’s gender has effect on usage of social coupon deal
95% of confidence

30. 2-1 Do demographics affect whether or not a
consumer uses a digital coupon? (Cont.)
• Ho: Consumer’s marital status has no effect on usage of social coupon deal
• Ha: Consumer’s marital status has effect on usage of social coupon deal
95% of confidence

31. 2-1 Do demographics affect whether or not a
consumer uses a digital coupon? (Cont.)
• Ho: Consumer’s age has no effect on usage of social coupon deal
• Ha: Consumer’s age has effect on usage of social coupon deal
95% of confidence

32. 2-1 Do demographics affect whether or not a
consumer uses a digital coupon?(Cont.)
• Ho: Consumer’s age has no effect on usage of social coupon deal
• Ha: Consumer’s age has effect on usage of social coupon deal
95% of confidence

33. Who Use?
Use Digital Coupon & Age
Use Digital Coupon & Gender
46-65 9
29%
30-45 46
Female
Male 18-29 37
71% 0 10 20 30 40 50
Use Digital Coupon & Income
Use Digital Coupon & Marital Status
150K+ 13
126K-150K 8
101K-125K 8
81K-100K 29
Married/Living with
partner
51K-80K 12
44% Single
31K-50K 14
0-30K 8
56% 0 5 10 15 20 25 30 35
**In range 81K-100K, there are 13 respondents who did not answer the
question, we assume their income are the mean, which is $94,477.

34. Who Do Not Use?
Not Use Social Coupon & Age
Not Use Digital Coupon & Gender
46-65 9
46%
female 30-45 14
male
54% 18-29 5
0 5 10 15
Not Use Social Coupon & Age
Not Use Social Coupon & Marital Status
150K+ 3
126K-150K 3
18% 101K-125K 10
Married/Living with 81K-100K 4
partner 51K-80K 6
Single
31K-50K 2
82% 0-30K 0
0 2 4 6 8 10 12

35. Why Do Not Use?
Reasons People Don't Use Digital Coupons
9
8 30%
7 26%
6
5 % of Total Response
4 15%
3 11% 11% # of Response for
2 7% Reason
1
0
Don't Not No Need No Value Too Busy Too
Know Familiar Many
How Comms

36. 3-1 Does using a digital coupon at a place that
you’ve used before affect consumers’ overall
experience with digital coupons?
• Ho: prior to using the deal, consumers have purchased from business has no effect
on consumers’ overall experience on using digital coupon
• Ha: prior to using the deal, consumers have purchased from business has effect on
consumers’ overall experience on using digital coupon
R2=0.29
95% of confidence

37. 3-2 Does consumer used which category of
business before affect consumers’ overall
experience with digital coupons?
• Ho: consumers used which category of business before has no effect on
consumers’ attitude toward the businesses
• Ha: consumers used which category of business before has effect on consumers’
attitude toward the businesses
Coefficients Standard Error t Stat P-value
Intercept 7.000 1.187 5.898 0.000
Category_Used_RestaurantBar -0.930 1.197 -0.777 0.439 R2 = 0.16
Category_Used_Retail -1.143 1.269 -0.901 0.370 95% of confidence
Category_Used_Salon -2.143 1.269 -1.689 0.095
Category_Used_Entertainment -0.846 1.232 -0.687 0.494
Category_Used_Health Service -0.667 1.370 -0.486 0.628
Category_Used_Experience -3.000 1.370 -2.189 0.031
Category_Used_Travel -1.250 1.327 -0.942 0.349

38. 3-2 Does consumer used which category of
business before affect consumers’ overall
experience with digital coupons?(Cont.)
People Who Don't Use Deals
18
16
14
12
10
8
6
4
2
0
1 2 3 4 5 6 7
Lowers Biz Status Friends/Family Use Deals

39. 3-3 Do consumers view the business differently
if they utilize social couponing?
• Ho: businesses utilizing digital coupon has no effect on consumers’ attitude toward
the businesses
• Ha: businesses utilizing digital coupon has effect on consumers’ attitude toward
the businesses
R2=0.49
95% of confidence

40. 3-3 Do consumers view the business differently
if they utilize social couponing?
People Who Buy Digital Coupons
200
180
160 FriendsRecommend
140 PrevCust/BuyDeal
Tell Others
120
ProudSavings
100
FriendsRecommend
80 Uncomfortable
60 OnlyGoIfDeal
LowerBizStatus
40
NoBuy Upfront
20
0
1 2 3 4 5 6 7
Less Likely Very Likely

41. Coupon User
Demographics
• Female – 71%
• Married/living with
partner – 56%
• 30-45 Age – 46%
• $81,000-100,000 – 32%
Lifestyle
• Proud to save money
• Enjoy going out
• Highly engaged online
• Always in the know
• Green Lifestyle
• Socialite

42. Non-Coupon User
Demographics
• Male – 54%
• Married/living with
partner – 82%
• 30-45 – 50%
• $101,000-125,000 – 36%
Lifestyle
• Very busy
• Not price sensitive
• Traditional
• Hands -on

43. Implicaitons
For a restaurant targeting an older demographic partnering with health services would be beneficial.
-With partnering with health services, should avoid using Living Social.
As a business, targeting existing customers would be more beneficial than targeting new customers
with digital coupons.
Should strongly consider Scoutmobbecause consumers who prefer mobility and who also prefer not to
print deals are more likely to use Scoutmob.
-Scoutmob is also more likely used for restaurant than any other site
Targeting consumers with a high preference for restaurants is your best bet.As peoples preferences
towards restaurants increases their opinions that it lowers a restaurants status decreases.
To create more of an experience for consumers, should provide an incentive for consumers to share
through social networks. People that have no social network think only a few of their friends use
deals.
Make it easier for consumers to use digital coupons by hiring brand reps/digital coupon ambassadors
educating customers on how to use digital coupon—as age increases “don’t know how” becomes
more frequent as the reason people don’t use digital coupons.