Coupon Usage and Frequent Buyer Club Participation by Lower,Middle, and Upper Social Classes

Abstract

More than 75% of households belong to at least one frequent-buyer club program and over 90% of these households use their cards almost every time they shop. Presently, customer-loyalty efforts are a major promotional priority for 56% of marketers. However, marketing scientists have not compared the social class participation levels of frequent-buyer club members to those of coupon-users and “ordinary” customers. By performing this comparison, it was found that the coupon-user (p < 0.01) and frequent-buyer (p < 0.01) groups had lower social class standings than did the “ordinary” households. Moreover, because there were no significant (p < 0.20) differences between the upper, middle, and lower social class standings of coupon-users and frequent-buyers, managerial substitutions of frequent-buyer promotions for coupon efforts seem rational.