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Cis500: Making Business Decisions I

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CIS 500

Making Business Decisions I: Networks and Telecom
As stated in the business dilemma, m-coupons have higher redemption rates than either paper or e-coupons because they are not forgotten. Very few people leave their cell phones at home when they leave the house. Therefore, it is virtually impossible to leave your coupon home. In addition to being easier to redeem, they are also substantially cheaper to send than traditional coupons for the company. The average paper coupon can cost anywhere from 0.25 to 0.40 per mailed coupon. Based on the price point and the effectiveness of redemption, m-coupons are more beneficial to a company than traditional coupons.
The downside of the mobile marketing and m-coupons is that at times people may view it as spam, and since spam is regarded very negatively, the café would not want that perception amongst its customers or potential customers. Also, text messages could cost receiver money if they don’t have an unlimited plan. There are very few people who are willing to pay for coupons.
The privacy issues involved with mobile marketing and m-coupons deal with the unwanted spam associated with m-coupons. Service providers’ needs to have customers sign up for the promotions and coupons in order for there to be no privacy complaints. Another factor to take into account is the age of the consumer. There are more eight to ten year olds with mobile phones today, and they don’t have the legal right to consent to receive the correspondences, which would create an even bigger privacy concern if the parents who pay for the phones are unhappy with their child receiving the messages.
With the privacy issues aside, the café can benefit from collecting and tracking response rates of m-coupons by customers from having customers fill out a survey when they come to the café. The survey could help to understand the best and

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