• Corpus ID: 17343219

Spending More to Save More : The Impact of Coupons on Premium Priced Products

@inproceedings{Thomas2003SpendingMT,
  title={Spending More to Save More : The Impact of Coupons on Premium Priced Products},
  author={Manoj. T. Thomas and Kapil Bawa and Geeta Menon},
  year={2003}
}
Past research and conventional wisdom suggests that coupons are used by price-sensitive consumers to save money. Three studies show that coupons for premium-priced products can actually make consumers spend more money than they would have spent in the absence of coupons. In study 1, we analyze scanner purchase data for two product categories. This analysis provides evidence that more than one out of four coupon-users increase their expenditures when using coupons, as compared to their non… 
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An MDP-based Coupon Issuing System
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A system based on the work of Shani et al. that determines the optimal coupon to issue each user by analyzing their purchase history and the potential profit made from issuing the coupon.

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