Do Coupon Expiration Dates Affect Consumer Behavior?

Using regret theory, the authors predict that expiration dates induce a second mode in the redemption pattern just prior to the expiration date. They test this prediction by extending an existing coupon redemption model to incorporate an expiration effect and then estimating both …

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Do Coupon Expiration Dates Affect Consumer Behavior?

2 weeks from now

without an expiration date. By 1991, less than 1% were is-sued without an expiration date (Martin 1991). This dramatic increase in the use of expiration dates has been fueled by manufacturers' …

jstor.org

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Do Coupon Expiration Dates Affect Consumer Behavior?

2 weeks from now

The use of expiration dates has experienced similar growth. In 1987, 26% of all coupons were issued without an expiration date. By 1991. less than 1% were is-sued without an expiration …

researchgate.net

FAQs about Do Coupon Expiration Dates Affect Consumer Behavior? Coupon?

What happens if a coupon expires longer?

A longer-duration coupon will result in a gain from increased redemption by low-value consumers, but also a loss due to increased redemption by loyal or high-value consumers. Therefore, a seller needs to trade off these potential gains and losses. ...

Does coupon duration matter?

This tends to benefit smaller-share brands that benefit more from increased redemption from consumers who prefer the competing brand, relative to the decrease in profits from their loyal consumers who would purchase at a regular price. Our research on coupon duration is most closely related to the work by Krishna and Zhang (1999). ...

Do coupons affect purchase behavior?

WHY META ANALYSIS Conventional knowledge suggests that coupons have a positive impact on sales prospects of the promoted product. We investigate whether there is broad consensus among different researchers as to the impact of coupons on purchase behavior. ...

How to determine the duration of a coupon?

Overall, when determining the coupon duration, managers need to trade off the gain from increased redemption by low-value consumers for longer-duration coupons, with the loss due to increased redemption by high-value consumers. Coupons as a price-discrimination device. ...

Does a coupon increase or decrease price?

A coupon may result in an increase or decrease in price. When the difference in valuation between high-value and low-value consumers is high (relative to the redemption costs), a seller can either reduce price and lower face value or increase coupon duration for the purpose of avoiding redemption by high-value consumers. 1. ...

Does coupon design influence consumers' redemption behavior?

Results simulation analysis replicate empirically observed redemptions patterns. This research proposes an analytical model of the joint optimization of coupon face value and duration together with the product price, and determines the impact of coupon design on consumers’ redemption behavior. ...