IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v14y1995i1p105-122.html
   My bibliography  Save this article

Competing Coupon Promotions and Category Sales

Author

Listed:
  • Jeongwen Chiang

    (Washington University in St. Louis)

Abstract

Recent reports show that manufacturers in many consumer product industries continue to use coupons as one of their main promotional tools. The rising intensity of coupon competitions, however, makes the issue of having better measures for coupon effects ever more important. This paper proposes a method to assess the category expansion effect in an environment where rival brands distribute coupons repeatedly over a period of time. A consumer utility maximization model is presented in which the decision of coupon use is endogenized along with the demand decision. Using single-source detergent data as benchmark, the proposed model is an advance over the conventional regression model in that the latter tend to produce upward-biased estimations for the category impact of coupons.

Suggested Citation

  • Jeongwen Chiang, 1995. "Competing Coupon Promotions and Category Sales," Marketing Science, INFORMS, vol. 14(1), pages 105-122.
  • Handle: RePEc:inm:ormksc:v:14:y:1995:i:1:p:105-122
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.14.1.105
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Baohong Sun, 2005. "Promotion Effect on Endogenous Consumption," Marketing Science, INFORMS, vol. 24(3), pages 430-443, July.
    2. Greg M. Allenby & Thomas S. Shively & Sha Yang & Mark J. Garratt, 2004. "A Choice Model for Packaged Goods: Dealing with Discrete Quantities and Quantity Discounts," Marketing Science, INFORMS, vol. 23(1), pages 95-108, June.
    3. Aviv Nevo & Catherine Wolfram, 1999. "Prices and Coupons for Breakfast Cereals," NBER Working Papers 6932, National Bureau of Economic Research, Inc.
    4. Chihwa Kao & Lung-fei Lee & Mark M. Pitt, 2001. "Simulated Maximum Likelihood Estimation of the Linear Expenditure System with Binding Non-Negativity Constraints," Annals of Economics and Finance, Society for AEF, vol. 2(1), pages 215-235, May.
    5. repec:eee:ijrema:v:34:y:2017:i:2:p:553-571 is not listed on IDEAS
    6. Jeongwen Chiang & Ching-Fan Chung & Emily Cremers, 2001. "Promotions and the pattern of grocery shopping time," Journal of Applied Statistics, Taylor & Francis Journals, vol. 28(7), pages 801-819.
    7. CAMPO, Katia & GIJSBRECHTS, Els & NISOL, Patricia, 1999. "Towards a conceptual framework of out-of-stock behaviour: The impact of product, consumer, and situation characteristics on out-of-stock reactions," Working Papers 1999023, University of Antwerp, Faculty of Applied Economics.
    8. Yi Qian & Hui Xie, 2011. "No Customer Left Behind: A Distribution-Free Bayesian Approach to Accounting for Missing Xs in Marketing Models," Marketing Science, INFORMS, vol. 30(4), pages 717-736, July.
    9. Chintagunta, Pradeep & Kyriazidou, Ekaterini & Perktold, Josef, 2001. "Panel data analysis of household brand choices," Journal of Econometrics, Elsevier, vol. 103(1-2), pages 111-153, July.

    More about this item

    Keywords

    coupon promotions; category sales;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:14:y:1995:i:1:p:105-122. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc). General contact details of provider: http://edirc.repec.org/data/inforea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.