Goutam Chakraborty is an Assistant Professor, Oklahoma State University, Stillwater, OK 74078; and Catherine Cole is Associate Professor, University of Iowa, Iowa City, IA 52242.
Coupon characteristics and brand choice
Article first published online: 8 SEP 2006
Copyright © 1991 Wiley Periodicals, Inc., A Wiley Company
Psychology & Marketing
Volume 8, Issue 3, pages 145–159, Autumn (Fall) 1991
How to Cite
Chakraborty, G. and Cole, C. (1991), Coupon characteristics and brand choice. Psychol. Mark., 8: 145–159. doi: 10.1002/mar.4220080302
- Issue published online: 8 SEP 2006
- Article first published online: 8 SEP 2006
The effects of coupons on brand choice and repurchase behavior were examined in a laboratory panel experiment. Each of the 122 consumers purchased a candy bar on 10 different occasions; on the seventh purchase occasion, each consumer received an announcement of a new candy bar and one of four versions of a coupon. Results showed that whether or not a consumer will use a coupon depends on the size of the coupon offer, how easily the consumer can redeem the offer, how brand loyal the consumer is, and whether or not the consumer is deal prone. We also found, after statistically adjusting for our censored sample, that loyalty and coupon Characteristics influence whether or not a consumer will continue to purchase a formerly discounted brand. Information aggregation theory (Tybout & Scott, 1983) explains better than attribution theory how the coupon affects repurchase decisions.