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Coupon Redemption and Its Effect on Household Cheese Purchases

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  • Diansheng Dong
  • Harry M. Kaiser

Abstract

By endogenizing unit value and coupon redemption, we estimate U.S. household cheese purchase, quality choice, and coupon redemption equations simultaneously. Zero purchases and missing values on coupons and unit values are taken into account in the model to correct for selectivity bias. Correlations among the three equations are found to be significant. Empirical findings show that high-quality choice significantly decreases cheese purchases, while cheese coupon usage significantly increases purchases. We find that higher income households select higher quality cheese, while larger households choose lower quality cheese. For coupon redemption, we find that African-American and Hispanic households redeem less, while Asian households have no significant difference compared to Caucasian households. Copyright 2005, Oxford University Press.

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  • Diansheng Dong & Harry M. Kaiser, 2005. "Coupon Redemption and Its Effect on Household Cheese Purchases," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 689-702.
    • Handle: RePEc:oup:ajagec:v:87:y:2005:i:3:p:689-702
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    1. Steven T. Yen & Andrew M. Jones, 1997. "Household Consumption of Cheese: An Inverse Hyperbolic Sine Double-Hurdle Model with Dependent Errors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 246-251.
    2. Diansheng Dong & J.S. Shonkwiler & Oral Capps, 1998. "Estimation of Demand Functions Using Cross-Sectional Household Data: The Problem Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 466-473.
    3. Goodwin, Barry K., 1992. "An Analysis Of Factors Associated With Consumers' Use Of Grocery Coupons," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(1), pages 1-11, July.
    4. Jonq-Ying Lee & Mark G. Brown, 1985. "Coupon Redemption and the Demand for Frozen Concentrated Orange Juice: A Switching Regression Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 647-653.
    5. Erdem, Tulin & Keane, Michael P. & Sun, Baohong, 1998. "Missing price and coupon availability data in scanner panels: Correcting for the self-selection bias in choice model parameters," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 177-196, November.
    6. Diansheng Dong & Brian W. Gould, 2000. "Quality versus quantity in Mexican household poultry and pork purchases," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 333-355.
    7. Ronald W. Ward & James E. Davis, 1978. "A Pooled Cross-Section Time Series Model of Coupon Promotions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(3), pages 393-401.
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    Cited by:

    1. Zheng, Xiaoyong & Zhen, Chen & Wohlgenant, Michael K., 2008. "Effects of Container Size on Overconsumption of Carbonated Soft Drinks," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6203, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Noble, Stephanie M. & Lee, Kang Bok & Zaretzki, Russell & Autry, Chad, 2017. "Coupon clipping by impoverished consumers: Linking demographics, basket size, and coupon redemption rates," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 553-571.
    3. Bakhtavoryan, Rafael & Capps, Jr., Oral, 2024. "A Demand Systems Analysis for Cheese Varieties Using a Balanced Panel of US-Designated Market Areas, 2018–2020," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Preprint), January.
    4. Berning, Joshua P., 2014. "The Effect of Breakfast Cereal Coupons on the Nutritional Quality of Household Purchases," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(A), pages 1-20, March.
    5. Diansheng Dong & Harry M. Kaiser, 2010. "Investigating household food interpurchase behavior through market segmentation," Agribusiness, John Wiley & Sons, Ltd., vol. 26(3), pages 389-404.
    6. Davis, Chris & Blayney, Don & Yen, Steven & Cooper, Joseph C., 2009. "An analysis of at-home demand for ice cream in the United States," MPRA Paper 24782, University Library of Munich, Germany.
    7. Meloyan, Artak & Bakhtavoryan, Rafael, 2017. "An Empirical Investigation of the Relationship between Coupons and Market Shares of National Brand and Private Label Food Products: an Easi Demand System Approach," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258226, Agricultural and Applied Economics Association.
    8. Stewart, Hayden & Blisard, Noel, 2006. "Household versus Community Effects: Who Really Pays More for Food?," 2006 Annual meeting, July 23-26, Long Beach, CA 21053, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Brumbaugh, Anne M. & Rosa, José Antonio, 2009. "Perceived Discrimination, Cashier Metaperceptions, Embarrassment, and Confidence as Influencers of Coupon Use: An Ethnoracial–Socioeconomic Analysis," Journal of Retailing, Elsevier, vol. 85(3), pages 347-362.
    10. Dong, Diansheng & Stewart, Hayden, 2008. "Household Food Purchase Patterns: The Case of Vegetables," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6428, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Abdulbaki Bilgic & Wojciech Florkowski & Cuma Akbay, 2010. "Demand for cigarettes in Turkey: an application of count data models," Empirical Economics, Springer, vol. 39(3), pages 733-765, December.
    12. Richard Mussa, 2015. "Do the Poor Pay More for Maize in Malawi?," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(4), pages 546-563, 05-27.
    13. Markidou Anna & Michis Antonis, 2016. "Channel Concentration and Retail Prices: Evidence from the Traditional Cheese Market of Cyprus," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 14(1), pages 109-119, May.
    14. Hayden Stewart & Noel Blisard, 2008. "Who Pays More for Food?," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 150-168, February.
    15. Berning, Joshua P. & Zheng, Hualu, 2011. "The Effect of Retail Grocery Coupons for Breakfast Cereals on Household Purchasing Behavior," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103661, Agricultural and Applied Economics Association.
    16. Richard J. Vyn & Getu Hailu, 2015. "Discount Usage and Price Discrimination for Pork Products in Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(4), pages 449-474, December.
    17. Bilgic, Abdulbaki & Eren, Gunes & Florkowski, Wojciech J., 2008. "Willingness to Pay for Potable Water in the Southeastern Turkey: An Application of both Stated and Revealed Preferences Valuation Method," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6755, Southern Agricultural Economics Association.
    18. Meloyan, Artak & Bakhtavoryan, Rafael, 2017. "An Empirical Investigation Of The Relationship Between Coupons And Market Shares Of National Brand And Private Label Food Products," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252683, Southern Agricultural Economics Association.
    19. Cihat Günden & Abdulbaki Bilgic & Bülent Miran & Bahri Karli, 2011. "A censored system of demand analysis to unpacked and prepackaged milk consumption in Turkey," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(6), pages 1273-1290, October.

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