The Coupon-Prone Consumer: Some Findings Based on Purchase Behavior across Product Classes

Abstract

An assumption in prior research on deal-prone or coupon-prone buyers has been that buying on deal is influenced in part by a household's demographic characteristics. One implication is that households that are deal-prone or coupon-prone in one product class should be so in other product classes. The authors develop a model of coupon usage across product classes that explains why households might behave consistently in their coupon usage across product classes. Purchase data are analyzed across seven product classes for each household to test the hypothesis that coupon usage is not independent across product classes and to identify differences in demographic variables and purchasing behavior between coupon-prone and non-coupon-prone households.

The dual role of price: decomposing consumers’ reactions to price

“…Finding a price for a particular item that is lower than expected enhances their perception of themselves as good shoppers. Furthermore, the statistically significant, negative coefficient of brand loyalty is consistent with the notion that switching costs are higher for brand-loyal consumers, so the negative coefficient of brand loyalty is plausible because price deals often require the consumer to switch brands (Bawa and Shoemaker 1987). Deal proneness relates exclusively to transaction utility effects, whereas financial constraints are associated only with allocative effects.…”

Customer base analysis: partial defection of behaviourally loyal clients in a non-contractual FMCG retail setting

“…Due to the increased merchandising and promotional activities of retailers consumers are trained to compare deals across competitors (Kim and Staelin, 1999). Moreover, Bawa and Shoemaker (1987) proved that customers being dealprone are less brand loyal and less store loyal. For them, the lower prices are the explanation of their purchases.…”

Strategic design of competing centralized supply chain networks for markets with deterministic demands

“…In our model, d is also understood as the cross-brand price sensitivity between the product of existing and new chains. According to Bawa and Shoemaker [4] and Ailawadi [2], more marketing activities lead to more frequent brand switching, causing d to increase. b: The parameter b represents the self-price sensitivity.…”