Chair of Production Management

INFORMS Conference Talk by Yordan Sölter

Effects of Minimum Purchase Amount Restrictions in Coupon Promotions

On October 18, Yordan Sölter presented his research on ”Effects of Minimum Purchase Amount Restrictions in Coupon Promotions” at the Annual INFORMS Conference in Indianapolis, Indiana, USA. Co-author of the working paper is Prof. Dr. Arnd Huchzermeier and Prof. Dr. Christian Schlereth (WHU).


A key question for retailers in running promotions is how to avoid granting discounts without generating (sufficient) incremental revenues. To add to the empirical couponing literature, we run a field experiment with >1.5 million customers in cooperation with a retailer. Based on a randomized allocation of coupons in the field experiment, we estimate the effects of different levels of minimum purchase amount restrictions for redeeming a coupon. Moreover, we explore optimal targeting policies based on prior transaction histories.