Digital Coupon Redemption: Conceptualization, Scale Development and Validation

Abstract

The purpose of this study is to develop a reliable and valid scale for measuring digital coupon redemption. The scale development process began with the grounded theory approach for item generation. This was followed by the development of a conceptual framework, item generation, initial reliability analysis, exploratory factor analysis and confirmatory factor analysis (CFA) based on primary data collected from 609 participants. For validating the scale, the CFA was repeated using data from 411 unique participants. Results from two independent surveys supported the proposed scale in terms of construct, convergent and discriminant validity. Survey study resulted in a 45-item digital coupon redemption scale. It also covers digital aspects such as intention to search, attitude toward internet searching, perceived risk, perceived convenience and personal innovativeness which were not covered in earlier promotion scales. This scale would assist marketers to maximize digital coupon redemption during their promotion campaigns. This is the first attempt to provide a comprehensive scale to measure digital coupon redemption in the marketing literature.