Do Shoppers Like Electronic Coupons?

Song-Zan Chiou-Wei and J. Jeffrey Inman

Journal of Retailing, 2008, vol. 84, issue 3, 297-307

Abstract: Past research has yielded valuable insights into the drivers of traditional coupon redemption, but the applicability of these results to electronic coupons remains an open question. We investigate the determinants of electronic coupon redemption, employing a large panel dataset for five product categories (detergent, milk, cookies, shampoo, and orange juice) for the period 2003–2005. Our findings reveal that education and employment positively influence redemption rates and our analysis indicates that these findings are not due to unobserved individual effects. The focus is on comparing coupon-use discrepancies between national and private label brands when the characteristics of coupons are taken into account. A higher face value appears to be a critical element in electronic coupon format, and this gives rise to more purchases for nonperishables (shampoo and detergent). Results also show significant seasonal variations in milk and orange-juice coupon usage. Furthermore, the distance of consumers from the redemption location has a significantly negative effect, whereas the expiration date has no evident effect. The implications for electronic coupon research and practice are discussed.

Keywords: Electronic coupons; Coupon usage; Count panel data; The generalized method of moments (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jouret:v:84:y:2008:i:3:p:297-307

DOI: 10.1016/j.jretai.2008.07.003

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