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The use of cents-off coupons by consumers is a widespread phenomenon and is well documented in the marketing literature. Recently, coupons have become available in electronic form on the World Wide Web. This article introduces an adaptation of the theory of planned behavior applied to coupon usage that encapsulates both traditional and electronic environments. A careful review of the couponing literature is presented, along with a proposed theoretical framework. A methodology for empirical verification is suggested and managerial implications are discussed, along with avenues for further research. (C) 2000 John Wiley & Sons, Inc.
The use of cents-off coupons as a marketing tool is a widespread phenomenon and serves different objectives for retailers and manufacturers. Typically, commercial surveys show that over 88% of grocery shoppers report having used at least one coupon in their grocery shopping in the last six months (Kingsbury, 1987). For retailers, chain-specific coupons or doubling and even tripling values of standard manufacturer coupons are mostly used to attract consumers into the store and as such, are often seen as loss leaders. For manufacturers, coupons are used as incentives for trial of new product entries and/or product reformulations; they can also be used as a price-reducing mechanism for estab lished brands, allowing deal-prone consumers to purchase the brand at a lower cost given their increased price sensitivity (Narasimhan, 1984). Firms use coupons instead of direct price reductions in order to maximize revenues by discriminating between price-elastic and non-priceelastic consumers and thus avoid the costly rewarding of current brand loyal users. From a consumer perspective, the decision to use coupons is actually a trade-off between the potential savings obtained and the associated costs of using coupons. Two key components of these costs are time and flexibility. Much time is required to search, organize, sort, and classify coupons. In addition, limited coupon dispersion within brands and categories leaves little flexibility in the choice of a particular brand or size in any given point of a purchase cycle. The information search literature suggests that search behavior will be observed if the buyer feels that the potential benefits outweigh the costs involved. A number of studies have also shown that deal-prone segments have specific demographic characteristics (Blattberg, Buesing, Peacock, & Sen, 1978; Webster, 1965), that have been appropriately coined by some as marketing mavens (Price, Feick, & Guskey-Federouch, 1988).
A well-researched area of marketing, couponing, has generally relied on intrusive forms of communication and distribution to reach potential consumers. Freestanding inserts in Sunday newspapers still represent over 78% of all distributed coupons (Blattberg & Neslin, 1990). Recently, technological advances have made it possible for coupons to be distributed electronically with the use of an interactive medium such as the World Wide Web (Web). Numerous e-coupon sites have emerged where consumers can browse through listings of product categories and brands and physically download specific coupons based on their own preferences. Some sites request consumption information prior to coupon access so that the offer can be tailored accordingly based on first trial, switching, or light/medium/heavy usage, for example. Users can select their own coupons by easily navigating through product/category listings; this transfers the choice option to the consumer level and signifi cantly reduces the time required to search, sort, and organize coupons. The purpose of this article is twofold: First, to review the current theories of coupon use put forward within a traditional mass media context. Second, to examine how these theoretical models hold in light of a new coupon distribution medium that exhibits interactivity and hence power of choice transferred to the end user. This article argues that in light of these new options, we might see a change in the profile of the typical coupon user and that the model of behavior observed might switch from a heuristic to a more systematic information search given reduced search costs. Retailers and manufacturers can benefit in targeting specific offers to specific segments while reducing distribution costs, thus enhancing efficiency and profitability. Implications of this are discussed.
The article is organized in three sections. First, a review of the cou poning and deal-prone literature examines key theoretical and practical findings relevant to our current investigation. Second, based on the current state of knowledge, a theoretical framework is proposed to examine coupon usage behavior based upon an enhancement of the wellgrounded theory of reasoned action (Fishbein & Ajzen, 1975). Third, issues that might contribute to support or disconfirm such a model within an interactive environment are identified and discussed. Finally, directions and avenues for future research within this context are presented.
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