COUPONING AS A HORIZONTAL AND VERTICAL STRATEGY: THEORY AND EFFECTS

John Connor ()

No 14344, Working Papers from University of Minnesota, The Food Industry Center

Abstract: This paper surveys developments in analytical models and empirical findings concerning the strategic use of manufacturers' coupons for U.S. grocery products. Traditional theories examine the horizontal effects of coupons as a strategy to charge various classes of consumers different prices. Recent developments focus on the use of coupons in manufacturer-retailer vertical competition. The paper provides data on trends in couponing: numbers, face values, redemption rates, total promotional costs, and international usage. The paper further analyses the effective price discounts provided by coupons across brands and segments of ready-to-eat cereals during 1992-1995.

Keywords: Industrial Organization; Marketing (search for similar items in EconPapers)
Pages: 39
Date: 1997
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:umrfwp:14344

DOI: 10.22004/ag.econ.14344

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