Consumers\u27 adoption of mobile coupon: A value-based adoption model

The features of portability, wireless, and location based services make mobile coupons an emerging marketing channel that is convenient, highly personalized, and less costly for retailers. However, consumers\u27 adoption rate of this service is still low, and critical mass is hard to reach. So retailers are hesitating to invest in mobile coupon services. Thus, it is important to understand the factors that drive consumers to adopt mobile coupon services. Previous studies in mobile marketing have mostly considered mobile marketing as a new technology rather than as a new marketing channel (e.g. Bauer, Reichardt, Barnes, & Neumann, 2005; Bruner II & Kumar, 2007). Factors that may be critical to coupon redemption behavior have been left out. Also, the definition and terminologies in previous studies were overlapping or similar to each other. The purpose of this study was (1) to examine a value-based adoption framework in the context of mobile coupon services, anchored by the study by Pura (2005); (2) to integrate and reexamine measurement scales from previous studies in mobile services adoption; and (3) to investigate the moderating effect of perceived control, observability, and income level. The study was executed in two phases. In Phase 1, the measurement scales from previous studies in mobile services were reexamined. With expert classification and a survey using a convenience sample, the face validity and the reliability of the scales are provided. In Phase 2, an online survey was distributed to a national sample of smartphone users with a video demonstration of a mock mobile coupon service. Then the proposed model and an alternative model were examined. Findings of this study suggest that convenience value and social value are the two major constructs directly influencing consumers\u27 intention to subscribe to a mobile coupon service. Coupon proneness and value consciousness are directly related to the perceived value constructs and they have a mediated influence on intention to subscribe. The observability of existing users of a mobile coupon service is high, and consumers\u27 intention to subscribe will be more impacted by monetary value. Also, when consumers have lower annual income, their perceived monetary value will be more impacted by value consciousness. Theoretical and managerial implications are also provided