• Corpus ID: 17343219

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

  title={Spending More to Save More : The Impact of Coupons on Premium Priced Products},
  author={Manoj. T. Thomas and Kapil Bawa and Geeta Menon},
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… 
1 Citation

Figures and Tables from this paper

An MDP-based Coupon Issuing System

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.

A Price Discrimination Theory of Coupons

The objective of this paper is to analyze the consumer's decision in electing to use cents-off coupons distributed by manufacturers of consumer products. Arguing that the decision to use coupons is

Coupon Value: A Signal for Price?

In this article, the author proposes that consumers use the value of a coupon to estimate price. Study 1 shows that the higher the percentage discount, the higher the perceived price; Study 2


Promotional expenditures for manufacturer coupon distributions have increased rapidly during the last decade. Marketing professionals have criticized this trend. We discuss how coupon distributions

Pleasant Surprises: Consumer Response to Unexpected In-Store Coupons

This article studies the impact of in-store “surprise” coupons (e.g., electronic shelf coupons, peel-off coupons) on consumers' total basket of purchases. A conceptual model is developed that (1)

A coupon is more than a low price: Evidence from a shopping-simulation study

To maximize consumer response to a price promotion, the manager needs to identify characteristics of the promotion that are critical to its effectiveness. This article describes a technique for doing

An Empirical Analysis of Internal and External Reference Prices Using Scanner Data

Single-source yogurt data are used to examine whether both internal and external reference prices affect purchase decisions. Internal reference prices are memory-resident prices based on actual,

Percentage discounts, initial price, and bargain hunting : a heuristic-systematic approach to price search behavior

Consumer decisions concerning price search were investigated using the heuristic-systematic model of social judgment (S. Chaiken, A. Liberman, & A. H. Eagly, 1989 ). Consumers used the size of the

The Effects of Price-Comparison Advertising on Buyers’ Perceptions of Acquisition Value, Transaction Value, and Behavioral Intentions

The authors expand and integrate prior price-perceived value models within the context of price comparison advertising. More specifically, the conceptual model explicates the effects of advertised

Price Perceptions and Consumer Shopping Behavior: A Field Study

Seven price-related constructs—five consistent with a perception of price in its “negative role” and two consistent with a perception of price in its “positive role”— are used as independent

Distinguishing Coupon Proneness from Value Consciousness: An Acquisition-Transaction Utility Theory Perspective

Previous research on coupon proneness has measured the construct only in behavioral terms (i.e., consumers who are more responsive to coupon promotions are coupon prone). On the basis of the study