Category-specific coupon proneness: The impact of individual characteristics and category-specific variables

In seeking to enhance the effectiveness of coupon promotions, researchers have long sought to identify “coupon prone” consumers. Previous measures of coupon proneness have not examined differences in coupon usage across product categories and have ignored the confounding effect of coupon attractiveness. An Item Response Theory (IRT)-based framework overcomes these limitations and yields category-specific estimates of propensity to redeem coupons that are independent of coupon attractiveness. The authors utilize an IRT-based model to estimate consumers’ category-specific propensities to redeem coupons for two product and two service categories, and investigate how coupon proneness varies across consumers and across categories as a function of individual characteristics and category-specific variables.The authors find that category-specific measures of propensity to redeem coupons achieve an average accuracy of 89 percent in predicting redemption intentions. Propensity to redeem coupons is also found to be related to category-specific brand loyalty and perceived coupon availability, as well as to individual characteristics such as general coupon proneness, value consciousness and price consciousness. These findings highlight the importance of studying coupon proneness at the category level and suggest that the IRT-based approach has considerable promise as a methodology for studying coupon usage. Using the approach proposed in this study, marketers can forecast the impact coupons are likely to have in their particular category, rather than relying on general coupon proneness measures to predict coupon redemption rates at the category level. The study's findings can also be used to identify categories and consumer segments where coupon promotions are likely to have a larger impact, and have important implications for managers planning joint couponing strategies.     

Using Coupon Incentives in Recycling Aluminum: A Market Approach to Energy Conservation Policy

A field experiment was conducted on a stratified sample of 354 recyclers and nonrecyclers to test the effects of coupon incentives on consumers' intentions and behavior in recycling aluminum. Results indicate that modest coupon incentives positively influenced recyclers' behavior, but did not influence nonrecyclers. Over the range of incentives tested, evidence suggests that increased recycling frequency is directly related to the coupon value. Implications for incorporating coupon promotional programs into the development of energy conservation policy, and areas for future research are discussed.     

Coupons in context: discounting prices or decreasing profits?

A coupon is a commonly used sales promotion device offering the user a discount on the purchase of a product. Consumer coupon offerings are also becoming increasingly diverse: from “% off” and “$ off” to “Buy one, Get one free” (BOGO) offers and co-promotions (Buy X, Deal on Y). This paper reports the results of three experiments that examine whether the economic value of a coupon is a source of information to infer the price of the product/service, and the quality of the product/service, which inference can undercut the economic value, with resulting consequences for deal evaluations and purchase intentions. The framework predicts, and empirical results show, that increasing the value of the coupon does not always improve deal evaluations or purchase intentions. This could imply lower profits for the company. The presence of past price information about the brand, information about prices of other brands offered by the company, and information about competitors’ prices moderate the impact of coupon value on brand-related inferences. When such alternate sources of information are present and are diagnostic of the price of the promoted product, consumers are less likely to infer price and quality from the value of the coupon and higher coupon values are more likely to increase deal evaluations and purchase intentions. Implications for managers designing and communicating promotions are offered.     

Effects of perceived behavioral control on the consumer usage intention of e‐coupons

To investigate changes that e‐coupons bring to consumers' coupon usage, the authors of this article developed and estimated models of coupon‐usage intention. The models are based on the theory of reasoned action or the theory of planned behavior. Results show that the theory of planned behavior explains e‐coupon usage intention better than the theory of reasoned action. On the other hand, the intention to use traditional coupons is effectively explained by the theory of reasoned action. Both perceived behavioral control and attitude toward Internet searching have significant effects on the intention to use e‐coupons. Also, heavy users of e‐coupons are different from those of traditional coupons. Light users of traditional coupons have relatively high intention to use e‐coupons if they have more access to e‐coupons. On the other hand, heavy users of traditional coupons have relatively low intention to use e‐coupons if they have less access to them. © 2006 Wiley Periodicals, Inc.     

Pride in my past: Influencing sustainable choices through behavioral recall

Emotional appraisal research has demonstrated that recalling a past behavior and its associated emotions can influence future behavior. However, how such recalled emotions shape sustainable consumer choice has not been examined. This study examines the role of recalled pride and guilt in shaping sustainable purchase intentions and the mediating role of anticipated pride and guilt. A conceptual model is proposed for motivating sustainable purchase intentions through the emotions associated with the behavioral recall. The model is applied in two experiments with online consumers examining purchase intentions of low carbon cars. Recalling feelings of pride associated with a past sustainability‐related behavior increases sustainable purchase intention, as compared with a neutral recall. This effect occurs through the mediation of both anticipated pride at the prospect of a sustainable behavior choice and anticipated guilt if the future choice is not sustainable. Similar hypotheses relating to recalled guilt at past unsustainable behavior were not supported. The study contributes to research on sustainable consumption, revealing an emotional route by which past behavior can influence future behavior. It also adds to emotional appraisal research by showing the role of specific self‐conscious emotions in forming this route, as prior research has focused more broadly on emotional valence.     

Effects of sales promotion type and promotion depth on consumer perceptions: the moderating role of retailer reputation

This study uses a between-subjects experimental design to test the effect of two sales promotion formats (coupon versus markdown) with either high and low face values on consumer attitudes toward the deal, perceived product quality, and purchase intentions. The reputation of the retailer offering the deal is predicted to moderate the relationship between the promotional offer and consumer responses. Consumers perceive product quality to be higher when offered a high value coupon vs. markdown but there is no significant difference in perceived quality across promotion types when the promotion face value is low. When a deep price discount is offered by a retailer with a negative reputation, however, consumers have more favorable attitudes toward the deal and higher purchase intentions when provided with a markdown vs. coupon. Conversely, a high value coupon elicits more favorable evaluations than a markdown when the retailer has a positive reputation. When the value of the promotion is low and the retailer has a positive reputation, consumers have more positive deal attitudes and purchase intentions when offered a markdown vs. coupon. There is no significant difference in the effects of promotion type when the retailer has a negative reputation. The findings therefore establish retailer reputation as an important moderator of sales promotions effectiveness. This research is limited by the use of a single product category and a student sample. Process measures are also needed to validate the proposed theoretical conceptualization. The results provide managers insight into the type and value of the sales promotion to offer based on consumer perceptions of the retailer's reputation in the market.     

Coupons and private labels: A cross-category analysis of grocery products

This article examines the influence of coupons on private label shares of grocery products. The impact of national brand and private label coupons, distributed by manufacturers and retailers, is examined. A consumer framework and a typology of coupon effects are developed to explain different types of coupon usage behavior. Aggregate scanner panel data on 480 product categories are used in the analysis. Both the type of coupon and the method of distribution (by manufacturer or by retailer) are found to be important determinants of private label share response. Couponing activities by the national brand manufacturer are negatively related to private label share, thus indicating that they may be effective deterrents of private label penetration. However, couponing activities related to private labels do not help increase private label shares. The surprising finding is that national brand store couponing activity is positively related to private label share.     

About the Guest Editors

This study integrates the findings of motivation-based research on coupon redemption. Hypotheses were proposed to test the relationships between various motivational factors and coupon usage. Results demonstrate that individual motivational factors, institutional barriers and interpersonal influences determine a consumer's coupon usage. A model of the system of factors related to coupon usage is proposed. Managerial implications and suggestions for future re- search are provided.     

An exploratory investigation into how socioeconomic attributes influence coupons redeeming intentions

In this study, we examine the effects that opportunity cost, income effect, coupon proneness and devaluation effect have on coupon redemption intention. Overall, the results of a survey received from approximately 2250 respondents suggest that prospect of savings and coupon proneness are positively associated, while opportunity cost is inversely associated with coupon redemption intention. The results are consistent across several sub-samples of grocery stores, which further underline the robustness of our hypotheses. Our analyses are more exhaustive than and therefore, contribute to, extant literature on promotions using coupons, because we base our study on behavioral, social and economic factors that influence coupon redemption intentions.     

The Effects of Coupon Promotion on Repeat Visits in Restaurants

Abstract

Will customers' intention to return to a restaurant increase with coupon promotion? To answer this question, this study examines the hypothetical effects of coupon promotion on return visits to restaurants. Based on a literature review, three hypotheses were developed to test the effect of a coupon, its face value, and a patron's prior dining experience on return intention. The authors found that neither coupon use nor coupon face value contributed to explaining respondents' return intentions. However, repeat customers have a greater likelihood of returning to the restaurant than new customers. The study also showed that the quality of food and service were key indicators of return intention.     

Predictors of Usage Intentions of Pirated Software

The purpose of this study is to investigate the salient factors influencing consumers’ attitudes and usage intentions towards pirated software. Using the Theory of Planned Behaviour, this study investigates the relationships between three sets of factors, i.e. personal, social and perceived behavioural control onto attitudes towards pirated software. Through a multiple regression, only personal factors have shown significant relationship with attitudes towards software piracy. Further results from this study have supported that favourable attitudes towards pirated software is likely to result in stronger intentions to use pirated software. It was found that computer proficiency acts as a predictor for intentions towards pirated software, rather than a moderator as originally postulated.     

SOCIAL DISCOUNTING AND THE LONG RATE OF INTEREST

The well‐known theorem of Dybvig, Ingersoll, and Ross shows that the long zero‐coupon rate can never fall. This result, which, although undoubtedly correct, has been regarded by many as surprising, stems from the implicit assumption that the long‐term discount function has an exponential tail. We revisit the problem in the setting of modern interest rate theory, and show that if the long “simple” interest rate (or Libor rate) is finite, then this rate (unlike the zero‐coupon rate) acts viably as a state variable, the value of which can fluctuate randomly in line with other economic indicators. New interest rate models are constructed, under this hypothesis and certain generalizations thereof, that illustrate explicitly the good asymptotic behavior of the resulting discount bond systems. The conditions necessary for the existence of such “hyperbolic” and “generalized hyperbolic” long rates are those of so‐called social discounting, which allow for long‐term cash flows to be treated as broadly “just as important” as those of the short or medium term. As a consequence, we are able to provide a consistent arbitrage‐free valuation framework for the cost‐benefit analysis and risk management of long‐term social projects, such as those associated with sustainable energy, resource conservation, and climate change.     

Do Shoppers Like Electronic Coupons?: A Panel Data Analysis

Past research has yielded valuable insights into the drivers of traditional coupon redemption, but the applicability of these results to electronic coupons remains an open question. We investigate the determinants of electronic coupon redemption, employing a large panel dataset for five product categories (detergent, milk, cookies, shampoo, and orange juice) for the period 2003-2005. Our findings reveal that education and employment positively influence redemption rates and our analysis indicates that these findings are not due to unobserved individual effects. The focus is on comparing coupon-use discrepancies between national and private label brands when the characteristics of coupons are taken into account. A higher face value appears to be a critical element in electronic coupon format, and this gives rise to more purchases for nonperishables (shampoo and detergent). Results also show significant seasonal variations in milk and orange-juice coupon usage. Furthermore, the distance of consumers from the redemption location has a significantly negative effect, whereas the expiration date has no evident effect. The implications for electronic coupon research and practice are discussed.     

Observation of other's preferential treatment as a constructive catalyst for improved repatronize intentions

Observing others receive preferential treatment has been found to provoke bystanders' negative reactions. However, seeing others treated better may also inspire bystanders to increase their repatronize intentions. Drawing upon theories of social comparison and goal-setting, this study investigates the condition when watching another's preferential treatment acts as a catalyst to enhance bystanders' repatronize intentions and the mechanism by which the constructive effect appears. The results indicate that when bystanders witness similar others' preferential treatment and believe that they can attain comparable treatment, their goal-setting motivation is more activated and consequently they are more committed to goal-relevant behavior (i.e., repatronize intentions).     

Influences on consumer response to direct mail coupons: An integrative review

A substantial and growing body of research on coupons and coupon effectiveness has emerged in the marketing literature. The objective of this paper is to review and consolidate the findings of previous studies to provide a better understanding of the factors that influence consumer response to direct mail coupons. The effects of coupon, brand, product category, and consumer characteristics on redemption behavior and incremental sales are examined, and their implications for the effectiveness of direct mail coupon promotions are discussed. Based on the findings of prior studies, a theoretical model of coupon effects on purchase behavior is proposed. Several key issues that need to be addressed in future research are identified. © 1996 John Wiley & Sons, Inc.     

Increasing repurchase rates: A reappraisal of coupon effects

One criticism of the use of sales promotions, particularly couponing efforts, is that they may contribute to the deterioration of a brand's consumer franchise. A consumer may be less inclined to repurchase a couponed brand than a brand bought without a coupon. Cognitive evaluation theory is used as a means of further understanding this phenomenon, and a study is conducted to testspecific hypotheses derived from the application of this theory. As hypothesized, this study presents evidence that allowing coupon users to choose between two defferent deals on the same brand may increased the repurchase rates of the couponed brand. © 1994 John Wiley & Sons, Inc.     

When consumers switch brands

A proposed integrative approach measured consumer response to various incentives to switch brands. The response measure consisted of both actual behavior (i.e., switching behavior) and an evaluative measure, which underlies the behavior. Self-perception theory was utilized to assess consumer switching behavior in response to intrinsic versus extrinsic motives. The integrative approach was tested in the context of a multistage longitudinal field study concerning five product classes. Findings show that there is a difference depending upon whether switching behavior was induced by extrinsic (e.g., price, coupon) or intrinsic (e.g., a desire to try a new brand) incentives. Unlike intrinsically induced switching, extrinsic incentives motivated consumers to switch despite a high level of satisfaction with the last purchased brand. However, this switching behavior resulted in weaker intentions to repurchase the new brand.     

The Influence of Deontological and Teleological Considerations and Ethical Climate on Sales Managers' Intentions to Reward or Punish Sales Force Behavior

This study examined how sales managers react to ethical and unethical acts by their salespeople. Deontological considerations and, to a much lesser extent, teleological considerations predicted sales managers' ethical judgments. Sales managers' intentions to reward or discipline ethical or unethical sales force behavior were primarily determined by their ethical judgments. An organization's perceived ethical work climate was not a significant predictor of sales managers' intentions to intervene when ethical and unethical sales force behavior was encountered.     

Information privacy and performance appraisal: An examination of employee perceptions and reactions

Role-failure acts (Waters and Bird, 1989) have been described as a form of morally questionable activity involving a failure to perform the managerial role. The present study examined employee perceptions and reactions with regard to one form of role-failure act, failure to maintain adequate privacy of performance appraisal information. The study assessed employees' attitudes toward various performance appraisal facets as an invasion of privacy and determined the relationships between these privacy-related attitudes and employees' satisfaction with components of their appraisal system, the system as a whole, and their jobs. Responses that organizations might take to counteract appraisal privacy concerns were also discussed. Kevin W. Mossholder is Lowder Professor of Management at Auburn University, Auburn, AL. His research interests include performance appraisal, dispositional/situational issues, and organizational behavior processes. He has published articles in Journal of Applied Psychology, Academy of Management Journal, Academy of Management Review, and Journal of Management, among others. William F. Giles, is Professor of Management at Auburn University. His research interests include performance appraisal, career development, ethical behavior, and employee benefits. His articles have appeared in Journal of Applied Psychology, Academy of Management Journal, and Personnel Psychology among others.Mark A. Wesolowski is a doctoral candidate at Auburn University. He is currently an instructor of human resource management at Miami University of Ohio. His research interests include human resource selection issues, performance appraisal, management development, and supervisor/subordinate work relationships.