The determinants of coupon usage

Cronovich, Ron; Daneshvary, Rennae; Schwer, R. Keith

doi:10.1080/00036849700000039

Cited by 24 publications

(28 citation statements)

References 14 publications

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“…However, as a robustness check, we repeated our analysis including the coupon information when computing price differences across households. As one would expect, the inclusion only strengthened our results, given the higher propensity of retired households to use coupons [see Cronovich et al (1997)]. In other words, households with a low opportunity cost of time are also more likely to clip coupons.…”

Section: Datamentioning

confidence: 70%

Lifecycle Prices and Production

Aguiar

2005

SSRN Journal

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Abstract:Using scanner data and time diaries, we document how households substitute time for money through shopping and home production. We find evidence that there is substantial heterogeneity in prices paid across households for identical consumption goods in the same metro area at any given point in time. For identical goods, prices paid are highest for middleaged, rich, and large households, consistent with the hypothesis that shopping intensity is low when the cost of time is high. The data suggest that a doubling of shopping frequency lowers the price paid for a given good by approximately 10 percent. From this elasticity and observed shopping intensity, we impute the shopper's opportunity cost of time, which peaks in middle age at a level roughly 40 percent higher than that of retirees. Using this measure of the price of time and observed time spent in home production, we estimate the parameters of a home production function. We find an elasticity of substitution between time and market goods in home production of close to 2. Finally, we use the estimated elasticities for shopping and home production to calibrate an augmented lifecycle consumption model. The augmented model predicts the observed empirical patterns quite well. Taken together, our results highlight the danger of interpreting lifecycle expenditure without acknowledging the changing demands on time and the available margins of substituting time for money.

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Section: Datamentioning

confidence: 70%

Lifecycle Prices and Production

Aguiar

2005

SSRN Journal

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“…Coupons have been primarily thought of as a tool for price discrimination (Narasimhan 1984, Banks and Moorthy 1999, Lu and Moorthy 2007, allowing firms to charge a lower price to consumers who are willing to spend effort on redeeming the coupons and are likely to have a lower willingness to pay. Many studies on the characteristics of individuals who redeem coupons support this view (Bawa et al 1997, Cronovich et al 1997, Swaminathan and Bawa 2005, Chiou-Wei and Inman 2008.…”

Section: Literature Reviewmentioning

confidence: 74%

Do Targeted Discount Offers Serve as Advertising? Evidence from 70 Field Experiments

2017

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T he prevalence and widespread usage of email has given businesses a direct and cost-effective way of providing consumers with targeted discount offers. While these discounts are expected to increase the demand for the promoted products, are they effective in increasing revenues? Do they have effects beyond acting as price reductions? We study these questions using individual-level data from 70 randomized experiments run by a large online ticket resale platform. We estimate the redemption rates of the offers and also measure the broader impact of emailed promotions by comparing purchases by individuals who received the experimental promotions with purchases by those who did not receive the offers because of the experimental randomization. We find that the offers cause the average expenditure to increase significantly, by $3.03 (a 37.2% increase) during the promotion window. However, the redemption rate of these offers is low. Importantly, 90% of these gains are not through redemption of the offers. The individuals who spent more on the platform in the past are more responsive to the offers, and the effect of the offers is significantly higher among individuals who did not transact on the platform in the year before the offer was given. Interestingly, the offer causes carryover to the week after the promotion expires; we find that spending increases by $1.55 in the week after the offer expires. Additionally, we find evidence for cross category spillovers to nonpromoted products: offers not applicable to a ticket genre cause an increase in spending in that genre. We conclude that emailed offers can serve as a form of "advertising" for the firm's products, in addition to being tools for price discrimination.

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“…Findings often associate coupon redemption with such variables as income, education, age, household size, wife's working status, presence of children, residence, race, and marital status (Bawa & Shoemaker, 1989;Bawa & Shoemaker, 1987a;Blattberg et al, 1978;Cronovich, Daneshvary, & Schwer, 1997;Green, 1996;Mittal, 1994;Montgomery, 1971;Narasimhan, 1984;Sigala, 2013;Teel, Williams, & Bearden, 1980). However, the extent of relationships reported in most of the previous studies sometimes tends to be inconsistent.…”

Section: Income and Education Level Of Touristsmentioning

confidence: 75%

Determinants of Tourism Coupon Redemption

Wang¹,

Zhang

2014

Journal of Travel & Tourism Marketing

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In spite of the importance of tourism coupon distribution in China, little is known about the impact of determinants on tourism coupon redemption (TCR). The purpose of this study is to investigate key influence factors of TCR using a structural equation modeling approach. Based on literature review, five antecedents of TCR were identified: face value, redemption costs, redemption limitations, brand awareness, and income and education level of tourists. Survey data from 516 tourism coupon holders in Hangzhou, China, demonstrate that face value and brand awareness are positively related to TCR, while redemption costs and redemption limitations have negative impacts on TCR.

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The determinants of coupon usage

Cited by 24 publications

References 14 publications

Lifecycle Prices and Production

Lifecycle Prices and Production

Do Targeted Discount Offers Serve as Advertising? Evidence from 70 Field Experiments

Determinants of Tourism Coupon Redemption

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