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https://doi.org/10.4236/tel.[phone]
https://www.inderscience.com/info/inarticle.php?artid=88507

has been cited by the following article:

• TITLE: The Impact of Restaurant Coupon Removal on Diners’ Consumption Behavior: A Theoretical Analysis

  AUTHORS: Tin-Chun Lin

  KEYWORDS: Coupons, Demotion Cost, Price Elasticity of Demand, Consumer Behavior

  JOURNAL NAME: Theoretical Economics Letters, Vol.9 No.1, January 10, 2019

  ABSTRACT: We investigated how customers respond when a restaurant stops issuing coupons after making them available to customers for a period of time. Our theoretical analysis suggests that this practice will decrease customers’ consumption demand and utility to a level even lower than the pre-coupon level. Customers who used the coupons and enjoyed the lower prices would suddenly feel less appreciated by a restaurant that stops issuing coupons. A demotion cost would result in a lower operating budget and a decrease in customers—to levels even lower than pre-coupon levels. Our theoretical analysis suggests that customers will be more sensitive to price increases due to the absence of coupons, rendering customer demand more elastic and the demand curve flatter.