Wednesday, October 04, 2006

Arby's coupon

Yesterday night, I came to Arby's to have my dinner to save my time. I use the coupon Arby's sends out to me every month. I just raised my hypothesis before I order:
People eat insides are more price intensive so that more people use coupon than those who drive through.
Supposing my hypothesis is true, if Arby's send out the coupon to everyone no matter whether they prefers to eat inside or drive through, then it may lose potential revenue since it increases the chance of using coupon among the driving through persons. After I observe during my dinner, four transaction occurs all including coupon. That increases my confidence on my hypothesis.

A naive way is to replace current strategy with only putting coupon inside the store.

Again, we can build a model to help Arby's to improve their revenue

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