323 Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 17 Mobile DM Coupon Promotion in Japan: A Case Study on Response Behavior Changes in Services Consumption Fumiyo N. Kondo The University of Tsukuba, Japan Yasuhiro Uwadaira WACCORD Co., Ltd., Japan Mariko Nakahara Hitachi Ltd., Japan Shahriar Akter East West University, Bangladesh INTRODuCTION Mobile phones will soon play an ideal role as a new, innovative, and one-to-one promotional medium. Experts believe that mobile phones will prevail as the first medium through which advertisers can reach a large audience on an individual basis (Business Wire, 2007, February 28). However, in reality, customer responses to the advertisements ABSTRACT This chapter investigates the changes in customers’ responses to mobile direct mail (DM) coupons on the shop visit probability (SVP) of a beauty parlor. Two experiments were carried out to examine the promotional effects of mobile DM coupons. The frst experiment, conducted in 2004, compared mobile DM coupons with postcard DM coupons. The mobile DM coupons were found to have no effect on SVP, although positive effects were observed for postcard DM coupons. The second experiment, conducted in 2005 with three types of mobile DM coupons, compared the responses of new customers with those of repeat customers. The results varied according to the settings but demonstrated stability in the same settings. For repeat customers, mail with shop’s telephone number for reservation had positive effects on SVP; however, ordinary mail had no effect, while hyperlink mail had negative effects. For new cus- tomers, all three types of mobile DM coupons exhibited positive effects on SVP. DOI: 10.4018/978-1-60566-074-5.ch017