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A Price Discrimination Theory of Coupons
Abstract
The objective of this paper is to analyze the consumer's decision in electing to use cents-off coupons distributed by manufacturers of consumer products. Arguing that the decision to use coupons is based on the tradeoff between costs of using coupons and the savings obtained, it is shown that coupons can serve as a price discrimination device to provide a lower price to a particular segment of consumers. Based on a price theoretic model, it is shown that the users of coupons are more price elastic than nonusers of coupons and that the opportunity cost of time and other household resource variables are determinant factors in consumers' decisions. Implications derived from the model are tested using diary panel data.
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Citations
Cited by
A benefit congruency framework of sales promotion effectiveness
Chandon, P., Wansink, B., & Laurent, G. (2000) · Journal of Marketing · doi:10.1509/jmkg.64.4.65.18071 · Cited by 1,518
Lichtenstein, D. R., Netemeyer, R. G., & Burton, S. (1990) · Journal of Marketing · doi:10.1177/002224299005400305 · Cited by 1,054
The effects of incentives, deal proneness, satisfaction and tie strength on word‐of‐mouth behaviour
Wirtz, J., & Chew, P. (2002) · International Journal of Service Industry Management · doi:10.1108/09564230210425340 · Cited by 393
Shaffer, G., & Zhang, Z. J. (1995) · Marketing Science · doi:10.1287/mksc.14.4.395 · Cited by 373
Towards understanding consumer response to stock-outs
Campo, K., Gijsbrechts, E., & Nisol, P. (2000) · Journal of Retailing · doi:10.1016/s0022-4359(00)00026-9 · Cited by 320
Metadata
- Authors
- Narasimhan, C.
- Venue
- Marketing Science
- Published
- 1984-05
- Volume
- 3
- Issue
- 2
- Pages
- 128-147
- ISSN
- 0732-2399 (ISSN-L)
- 1526-548X
- OpenAlex
- W2132818755
- Cited by
- 491
- References
- 0
- FWCI
- 15.98
- Type
- journal article
- Language
- en
- Open access
- closed
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- CoChat. (2026). Citation check: A Price Discrimination Theory of Coupons. https://app.cochat.ai/papers/10.1287/mksc.3.2.128
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- Narasimhan, C. (1984). A Price Discrimination Theory of Coupons. Marketing Science. https://doi.org/10.1287/mksc.3.2.128
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
