ESSAYS ON Strategic Control and Consumer Response: Insights from Vertical Restraints and Promotional Tools

Abstract

This thesis examines how location shapes market outcomes through its influence on both consumer behaviour and distribution channel design. The first essay investigates the effectiveness of electronic coupons using transaction, review, and mobile GPS data. The results show that consumers located farther from a focal restaurant are more likely to leave reviews after coupon redemption. E-coupons also generate positive spillover effects by increasing subsequent review activity at nearby restaurants. These effects vary across mobility segments, with transit-oriented consumers exhibiting stronger exploratory behaviour than consumers associated with workplaces or educational institutions. The second essay examines the interaction between exclusive dealing and exclusive territories in automobile distribution channels. Using multi-level data from the Chinese automobile industry, the study finds that the two contractual arrangements operate as complementary governance mechanisms in luxury markets. Dealer size negatively affects the likelihood of exclusive dealing, particularly for luxury brands. Overall, this thesis demonstrates how spatial considerations influence firm performance, market coordination, and competitive outcomes through both consumer mobility patterns and geographic distribution strategies.