In this chapter, after making them available to customers
for a period of time, I researched how customers react when a restaurant stops
issuing coupons. Distribution of coupons will improve company revenues and save
money for clients. As a consequence, my theoretical research indicates that
this strategy will reduce the consumption demand and utility of consumers to a
level even lower than the level of pre-coupon. The aim of clients to revisit
the same restaurant was disappointed by the coupon denial encounter. Customers
who used the coupons and appreciated the reduced prices, more significantly,
would A restaurant that avoids distributing coupons instantly feels less
valued. A demotion expense would also result in a smaller operating budget and
a drop in consumers to even lower levels than pre-coupon levels. As a result,
my theoretical research indicates that because of the lack of coupons, which
makes consumer demand more elastic and the demand curve, that is, the demand
curve will become flatter, consumers will be more susceptible to price rises.
Author (s) Details
Dr. Tin-Chun Lin
School of Business and Economics, Indiana University Northwest, Gary, IN
46408, USA.
View Book :- https://bp.bookpi.org/index.php/bpi/catalog/book/276
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