Increasing repurchase rates: A reappraisal of coupon effects


  • Dr. Judy F. Graham

    1. Assistant Professor of Marketing at the Graduate School of Management, St. John Fisher College, 3690 East Avenue, Rochester, New York 14618
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One criticism of the use of sales promotions, particularly couponing efforts, is that they may contribute to the deterioration of a brand's consumer franchise. A consumer may be less inclined to repurchase a couponed brand than a brand bought without a coupon. Cognitive evaluation theory is used as a means of further understanding this phenomenon, and a study is conducted to testspecific hypotheses derived from the application of this theory. As hypothesized, this study presents evidence that allowing coupon users to choose between two defferent deals on the same brand may increased the repurchase rates of the couponed brand. © 1994 John Wiley & Sons, Inc.