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

A mixture likelihood approach for generalized linear models

“…) Teel, Williams, and Bearden (1980) demonstrated that households who would try a new product with a coupon tended to be larger, younger, and to have higher incomes. A number of authors have developed models of consumer couponing behavior to predict how coupon usage should vary by demographic characteristics of households (Blattberg, Buesing, Peacock, and Sen 1978;Narasimhan 1984;Bawa and Shoemaker 1987).…”

“…In relation to these underlying psychological variables, segments of consumers may exist, such as coupon prone shoppers, value conscious shoppers (Lichtenstein, Netemeyer, and Burton 1990), involved/activist shoppers, or routinized/brand loyal shoppers (Bawa and Shoemaker 1987) which exhibit differences in the extent to which coupons are used. Theories of coupon redemption behavior predict these segments to exhibit different patterns of associations of coupon usage and household demographic variables.…”

“…Since homeowners have lower storage costs, home ownership (HOMEOWN) is hypothesized to result in higher coupon redemption (Blattberg et al 1978;Bawa and Shoemaker 1989). INCOME should have a negative association with couponing, as higher incomes tends to decrease leisure time (Narasirnhan 1984;Bawa and Shoemaker 1987), while economic theory suggests that lower income households may be more price sensitive (cf. Blattberg et al 1978;Bawa and Shoemaker 1989).…”

“…Blattberg et al 1978;Bawa and Shoemaker 1989). Average working hours of female and male household heads (FHAVHRS respectively MHAVHRS) are hypothesized to be negatively associated with coupon usage, as time spent working negatively affects the time available for handling coupons (Blattberg et al 1978;Narasimhan 1984;Bawa and Shoemaker 1987). The effect of household size (HHSIZE) is not equivocal.…”

“…Larger families are likely to have a larger set of acceptable brands, and therefore lower substitution costs, which may result in higher coupon usage Shoemaker 1987, 1989). However, larger households may also have less time available for handling coupons, which would result in a lower coupon usage rate (Bawa and Shoemaker 1987). Education of the female head (FHEDUCN) is likely to positively affect couponing, as higher educated more often display variety seeking behavior which result in lower substitution costs and therefore higher coupon usage (Bawa and Shoemaker 1987), while a higher educational level will also be associated with a higher efficiency of housewives in organizing their time, and higher coupon usage consequently (Narasimhan 1984).…”