Study on Voucher Redemption Rates

Last registered on December 17, 2019

Pre-Trial

Trial Information

General Information

Title
Study on Voucher Redemption Rates
RCT ID
AEARCTR-0003150
Initial registration date
July 14, 2018

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
July 23, 2018, 4:27 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Last updated
December 17, 2019, 7:49 AM EST

Last updated is the most recent time when changes to the trial's registration were published.

Locations

Primary Investigator

Affiliation
Bocconi University

Other Primary Investigator(s)

Additional Trial Information

Status
In development
Start date
2018-07-16
End date
2020-06-30
Secondary IDs
Abstract
We run a natural field experiment with an appliance retailer in the United Kingdom. Randomly selected subjects receive a discount or different types of vouchers that need to be redeemed before check-out. We vary the level of difficulty to redeem the voucher and analyze its effect on redemption rates. A subset of subjects receive an additional intervention reminding them to redeem the voucher before check-out.
External Link(s)

Registration Citation

Citation
Rodemeier, Matthias. 2019. "Study on Voucher Redemption Rates." AEA RCT Registry. December 17. https://doi.org/10.1257/rct.3150
Former Citation
Rodemeier, Matthias and Matthias Rodemeier. 2019. "Study on Voucher Redemption Rates." AEA RCT Registry. December 17. https://www.socialscienceregistry.org/trials/3150/history/58996
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2018-07-16
Intervention End Date
2018-08-13

Primary Outcomes

Primary Outcomes (end points)
Whether the voucher has been redeemed.
Quantities demanded of each product category.
Revenue.
Profit.
We will also conduct an explorative analsis whether voucher redemption rates are correlated with the purchase value.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
The description is available in the field "Experimental Design (Hidden)" and becomes available upon completion of the data collection.
Experimental Design Details
The experiment will be implemented in the online shop of an appliance retailer in the United Kingdom. Potential customers who visit the website of the appliance retailer are randomly assigned to one of the following 6 groups with equal probability. The groups are sorted (in ascending order) by the degree of difficulty of redeeming a voucher on the webpage:

1. A banner informs subjects about a current sale in which they receive a discount of X% on all products. The discount is automatically applied in the shopping card. Subjects are reminded on the check-out page (the "shopping card") that the discount is automatically applied.

2.1. In this group the same banner appears but subjects are required to copy a voucher code from the banner and insert it into a field on the check-out page. The check-out page also reminds subjects about the sale with an additional banner and highlights the field into which the discount needs to be pasted.

2.2. Subjects in this group are treated as in group 2.1. but receive no reminders on the check-out page about the current sale.

3.1. Subjects also see a sales banner as in the other groups but cannot easily access the discount. They first need to click on the banner and are then forwared to an additional webpage where they find the voucher code. Just like in group 2.1 and 2.2., the code needs to be inserted into a discount field on the check-out page. Subjects receive the same reminders about the sale as subjects in group 2.1.

3.2. Subjects receive no reminder on the check-out page about the sale. Everything else is identical to group 3.1.

4. Group 4 constitutes the control group. Subjects receive no discount.


By comparing the vouchers with different hassle costs (groups 2 and 3) to an automatically applied discount (group 1), we are able to quantify the reduction in consumer surplus caused by hassle costs and inattention. The difference in quantities demanded between group 1 and 4 informs us about the price elasticity without the frictions under consideration.

Since subjects in the reminder-groups (2.1 and 3.1) are likely to be (more) attentive to the voucher than in the no-reminder groups (2.2 and 3.2), differences in redemption rates between these groups allows us to separate hassle costs from inattention.
Randomization Method
Randomization done by computer.
Randomization Unit
The randomization unit is the HTTP-Cookie of the visitor.
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
30,000 cookies.
Sample size: planned number of observations
30,000 cookies.
Sample size (or number of clusters) by treatment arms
5,000 cookies.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB

Institutional Review Boards (IRBs)

IRB Name
IRB Approval Date
IRB Approval Number

Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials