How to Design Coupons to Encourage Cherry Pickers’ Repurchase without Using Coupons: Evidence from an Asian E-commerce Platform

Abstract

This study examines the relationship between coupon design and repurchase without using coupons of cherry pickers, defined as consumers who rely heavily on promotions and exhibit low brand loyalty. Drawing on theories of discount dependency, reinforcement, and extinction, we investigate whether specific coupon attributes can shift cherry pickers from promotion-driven purchases toward sustained engagement. Using data from 987 coupons distributed by a leading Asian cosmetics e-commerce platform between January and June 2024, we estimate regression models incorporating both main and interaction effects of coupon design factors. The results reveal that segment-targeted coupons reinforce discount dependency and reduce voluntary repurchase without coupons, while indirect rewards positively influence sustained platform visits. Immediate rewards stimulate short-term purchases but weaken long-term engagement. Expiration dates and minimum purchase requirements emerge as critical constraints, significantly interacting with discount depth to produce both positive and negative outcomes. Overall, three hypotheses were fully supported, five partially supported, and one rejected, highlighting the complexity of coupon effects. The findings contribute theoretically by demonstrating the interactive role of coupon attributes in shaping consumer behavior, and practically by suggesting that firms should prioritize indirect, delayed, and moderately constrained coupons to transform cherry pickers into loyal customers and achieve sustainable platform growth.