Raj Sethuraman is an assistant professor of marketing, College of Business Administration, University of Iowa, Iowa City, Iowa 52242.
Coupons and private labels: A cross-category analysis of grocery products
Article first published online: 8 SEP 2006
Copyright © 1992 Wiley Periodicals, Inc., A Wiley Company
Psychology & Marketing
Volume 9, Issue 6, pages 487–500, November/December 1992
How to Cite
Sethuraman, R. and Mittelstaedt, J. (1992), Coupons and private labels: A cross-category analysis of grocery products. Psychol. Mark., 9: 487–500. doi: 10.1002/mar.4220090606
- Issue published online: 8 SEP 2006
- Article first published online: 8 SEP 2006
This article examines the influence of coupons on private label shares of grocery products. The impact of national brand and private label coupons, distributed by manufacturers and retailers, is examined. A consumer framework and a typology of coupon effects are developed to explain different types of coupon usage behavior. Aggregate scanner panel data on 480 product categories are used in the analysis. Both the type of coupon and the method of distribution (by manufacturer or by retailer) are found to be important determinants of private label share response. Couponing activities by the national brand manufacturer are negatively related to private label share, thus indicating that they may be effective deterrents of private label penetration. However, couponing activities related to private labels do not help increase private label shares. The surprising finding is that national brand store couponing activity is positively related to private label share.