Couponing As A Horizontal And Vertical Strategy: Theory And Effects
AbstractThis paper surveys developments in analytical models and empirical findings concerning the strategic use of manufacturers' coupons for U.S. grocery products. Traditional theories examine the horizontal effects of coupons as a strategy to charge various classes of consumers different prices. Recent developments focus on the use of coupons in manufacturer-retailer vertical competition. The paper provides data on trends in couponing: numbers, face values, redemption rates, total promotional costs, and international usage. The paper further analyses the effective price discounts provided by coupons across brands and segments of ready-to-eat cereals during 1992-1995.
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Bibliographic InfoPaper provided by University of Minnesota, The Food Industry Center in its series Working Papers with number 14344.
Date of creation: 1997
Date of revision:
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Postal: 317 Classroom Office Building, 1994 Buford Avenue, St. Paul, MN 55108-6040
Web page: http://foodindustrycenter.umn.edu/
More information through EDIRC
Coupons; sales strategies; vertical competition; food products; ready-to-eat cereals.; Industrial Organization; Marketing;
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- Gerstner, Eitan & Hess, James D, 1991. "A Theory of Channel Price Promotions," American Economic Review, American Economic Association, vol. 81(4), pages 872-86, September.
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- John M. Connor, 1996.
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12, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
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- Chakravarthi Narasimhan, 1984. "A Price Discrimination Theory of Coupons," Marketing Science, INFORMS, vol. 3(2), pages 128-147.
- Ronald W. Cotterill, 1996. "High Cereal Prices and the Prospects for Relief by Expansion of Private Label and Antitrust Enforcement," Issue Papers 11, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
- Gregory K. Price & John M. Connor, 2003.
"Modeling coupon values for ready-to-eat breakfast cereals,"
John Wiley & Sons, Ltd., vol. 19(2), pages 223-243.
- Price, Gregory K. & Connor, John M. & Fulton, Joan R., 1999. "Modeling Coupon Values For Ready-To-Eat Breakfast Cereals," 1999 Annual meeting, August 8-11, Nashville, TN 21553, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Gregory K. Price & John M. Connor & Joan R. Fulton, 2001. "Modeling Coupon Values for Ready-To-Eat Breakfast Cereals," Food Marketing Policy Center Research Reports 054, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
- Price, Gregory K. & Connor, John M., 2001. "Modeling Coupon Values for Ready-To-Eat Breakfast Cereals," Research Reports 148374, University of Connecticut, Food Marketing Policy Center.
- Connor, John M., 1999. "Evolving Research On Price Competition In The Grocery Retailing Industry: An Appraisal," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 28(2), October.
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