Targeted retail coupons influence category-level food purchases over 2-years

Abstract

BackgroundTargeted coupons strongly influence purchasing behavior and may represent an innovative approach for improving dietary behaviors.MethodsThe retail analytics firm, Dunnhumby, provided secondary retail data containing grocery transactions, targeted coupon exposures, and coupon use for 2500 households over 2-years. The USDA Quarterly At-Home Food Purchasing Database was used to categorize individual foods into 52 categories and combined into 12 food groups. Mixed effects linear models estimated the difference-in-difference effects of coupon exposure on category-level purchase rate/wk. pre- and post-campaign; models also tested effect modification by food category.ResultsCategory-level food purchases significantly increased post-campaign. Mean (SD) food purchases/wk. Among exposed households (17.34 (13.08) units/wk) vs. unexposed households (3.75 (4.59) units/wk) were higher (p < 0.001). Difference-in-difference effects of coupon exposure showed a higher increase in purchase rate among exposed vs. unexposed households (5.73 vs. 0.67, p < 0.001). Food category significantly modified the association between coupon exposure and coupon campaign. Category-level purchase rate among exposed vs. unexposed households was relatively higher in less healthful (e.g. convenience foods) vs. more healthful categories (e.g. nuts) with a 1.17 unit/wk. increase in convenience foods purchase (p < 0.001) vs. a 0.03 unit/wk. increase in nuts (p < 0.001). Exploratory analyses suggested that price elasticity of food categories for targeted coupons (1.02–2.81) was higher than previous estimates for untargeted coupons.ConclusionAcross food categories, coupon exposure increased category-level purchase rate, with a relatively larger effect size for less healthful than more healthful categories. Promising results from this preliminary study suggest that experimental research is warranted to determine whether targeting with the explicit purpose of improving dietary quality can more effectively influence diet, and whether it can do so more cost effectively.Electronic supplementary materialThe online version of this article (10.1186/s12966-018-0744-7) contains supplementary material, which is available to authorized users.

Influence of Food and Beverage Companies on Retailer Marketing Strategies and Consumer Behavior

“…In 2017, 302 billion coupons for consumer packaged goods were distributed in the US [ 52 ]. Six studies evaluated coupons and reported coupons were associated with increases in overall purchase volume, impulse purchase volume, brand choice, and product trialing (first-time purchase), but not brand loyalty [ 53 , 54 , 55 , 56 , 57 , 58 ]. Two studies assessed customized coupons, which target consumer groups based on demographic characteristics or past shopping behavior, and found they were associated with increased purchasing of targeted products [ 54 , 56 ].…”

“…Six studies evaluated coupons and reported coupons were associated with increases in overall purchase volume, impulse purchase volume, brand choice, and product trialing (first-time purchase), but not brand loyalty [ 53 , 54 , 55 , 56 , 57 , 58 ]. Two studies assessed customized coupons, which target consumer groups based on demographic characteristics or past shopping behavior, and found they were associated with increased purchasing of targeted products [ 54 , 56 ]. Coupons in some product categories may be more impactful than others: one study found that coupons led to greater product trialing when promoting leading brands and categories that were popular, easy to store, had fewer products in the category (easier for customers to process less options), and were frequently on sale [ 55 ].…”

“…Coupons in some product categories may be more impactful than others: one study found that coupons led to greater product trialing when promoting leading brands and categories that were popular, easy to store, had fewer products in the category (easier for customers to process less options), and were frequently on sale [ 55 ]. Another study found that while customized coupons led to increased purchases for both healthy and unhealthy products, they were more effective for unhealthy products [ 54 ].…”

“…As previously described, a small number of studies compared marketing of healthy versus unhealthy products [ 54 , 67 , 69 , 74 , 84 , 89 , 90 ]. Of these, four focused on price, three on placement, and three on promotion.…”

“…Other promotion activities, such as giveaways, games, and signs, may be less impactful. Notably, findings suggest that retailer marketing strategies may be less effective at driving sales for healthy foods and beverages [ 54 , 67 , 69 , 74 , 84 , 89 , 90 ]. Of the small number of studies that specifically considered sales of healthy products, the majority found that retailer marketing strategies, including signs and price promotions, were not associated with increased sales of healthy products.…”