Estimating the Effects of Higher Coupon Face Values on the Timing of Redemptions, the Mix of Coupon Redeemers and Purchase Quantity

  title={Estimating the Effects of Higher Coupon Face Values on the Timing of Redemptions, the Mix of Coupon Redeemers and Purchase Quantity},
  author={Aradhna Krishna and Robert W. Shoemaker},
  journal={Marketing Science eJournal},
One of the key decisions a manager must make in designing a coupon promotion is to decide on the face value. In this study we examine the effects of higher face values on coupon redemption timing, category purchase timing, the mix of buyers who redeem the coupon, and purchase quantity. Data from a field experiment on coupon face values are used to test the hypotheses. A new method of measuring the effects of a coupon on category purchase timing is proposed. We find that coupons per se tend to… 

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