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Coupon characteristics and redemption intentions: A segment‐level analysis
Author(s) -
Ramaswamy Venkatram,
Srinivasan Srini S.
Publication year - 1998
Publication title -
psychology and marketing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.035
H-Index - 116
eISSN - 1520-6793
pISSN - 0742-6046
DOI - 10.1002/(sici)1520-6793(199801)15:1<59::aid-mar5>3.0.co;2-m
Subject(s) - coupon , demographics , segmentation , face value , market segmentation , psychology , value (mathematics) , marketing , advertising , social psychology , econometrics , business , economics , statistics , computer science , sociology , mathematics , demography , artificial intelligence , finance
The authors investigate how different segments of consumers react to different coupon characteristics, such as face value and method of distribution. They utilize a latent segmentation approach to identify the underlying segments. The empirical analysis suggests that different segments of consumers place varying emphasis with regard to economic benefits, psychic benefits, effort costs, and substitution costs. A further examination of the derived segments with respect to consumer correlates such as psychological, attitudinal, behavioral, and demographic characteristics reveals that coupon‐related consumer characteristics, rather than demographics, exhibit significant and meaningful differences across these segments. Implications of the segment‐level analysis for evaluating coupon drops and managing promotional expenditures are also discussed. © 1998 John Wiley & Sons, Inc.