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Coordinating price reductions and coupon events
In this article, the authors use an economic model to show that it may be optimal to lower the retail price during a coupon event when marginal consumers have moderate hassle costs of coupon redemption. The results from the model offer predictions on the relationships among coupon redemptions, the shelf price, and the coupon face value. The authors test the predictions on a large data set of hundreds of coupon events across six packaged goods categories. The data show that when a small coupon face value is offered, the shelf price is likely to be reduced. They also find that coupon efficiency increases when there is a lower retail price. Our results are of interest to managers who plan the promotion calendar and decide whether to coordinate price promotions with coupon events. The results contribute to economic theory, in that the authors show that when a firm moves from uniform pricing (eg, no coupons) to second-degree price discrimination (eg, coupons), it is possible for all consumers to face a lower price. This finding has public policy implications, showing that second-degree price discrimination may increase the welfare of all consumers..Printed Journal
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | : American Marketing Association |
|---|---|
| Edisi | - |
| Subjek | Retailing Economic models Public policy Market research Pricing policies studies Discount coupons |
| ISBN/ISSN | 222437 |
| Klasifikasi | - |
| Deskripsi Fisik | - |
| Info Detail Spesifik | - |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas | Tidak Ada Data |