IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v9y1990i2p125-145.html
   My bibliography  Save this article

A Market Response Model for Coupon Promotions

Author

Listed:
  • Scott A. Neslin

    (Dartmouth College)

Abstract

An econometric market response model for measuring the effect of coupon promotions upon market share is developed and estimated. In addition to the brand's own couponing efforts, the model takes into account retailer promotions for the brand as well as competitive couponing activity. The model is multi-equation, simultaneous, and is estimated using scanner panel data. Results indicate that coupons have a pronounced effect upon market share, although the effect varies from brand to brand and may not be strong enough for some brands for couponing to be profitable in the short term.

Suggested Citation

  • Scott A. Neslin, 1990. "A Market Response Model for Coupon Promotions," Marketing Science, INFORMS, vol. 9(2), pages 125-145.
  • Handle: RePEc:inm:ormksc:v:9:y:1990:i:2:p:125-145
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.9.2.125
    Download Restriction: no

    Citations

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


    Cited by:

    1. Yuxin Chen & Chakravarthi Narasimhan & Z. John Zhang, 2001. "Consumer Heterogeneity and Competitive Price-Matching Guarantees," Marketing Science, INFORMS, vol. 20(3), pages 300-314, June.
    2. Gregory K. Price & John M. Connor, 2003. "Modeling coupon values for ready-to-eat breakfast cereals," Agribusiness, John Wiley & Sons, Ltd., vol. 19(2), pages 223-243.
    3. Francesca Magno & Fabiio Cassia & Marta Ugolini, 2014. "L’efficacia delle campagne di social couponing: uno studio tra i merchant di Groupon," MERCATI E COMPETITIVITÀ, FrancoAngeli Editore, vol. 2014(3), pages 41-63.
    4. Aviv Nevo & Catherine Wolfram, 1999. "Prices and Coupons for Breakfast Cereals," NBER Working Papers 6932, National Bureau of Economic Research, Inc.
    5. Peter Ebbes & Dominik Papies & Harald J. van Heerde, 2011. "The Sense and Non-Sense of Holdout Sample Validation in the Presence of Endogeneity," Marketing Science, INFORMS, vol. 30(6), pages 1115-1122, November.
    6. Randolph E. Bucklin & Sunil Gupta, 1999. "Commercial Use of UPC Scanner Data: Industry and Academic Perspectives," Marketing Science, INFORMS, vol. 18(3), pages 247-273.
    7. Shor, Mikhael & Oliver, Richard L., 2006. "Price discrimination through online couponing: Impact on likelihood of purchase and profitability," Journal of Economic Psychology, Elsevier, vol. 27(3), pages 423-440, June.
    8. (Catherine) Zhang, Jie & Savage, Scott J. & Chen, Yongmin, 2015. "Consumer uncertainty and price discrimination through online coupons: An empirical study of restaurants in Shanghai," Information Economics and Policy, Elsevier, vol. 33(C), pages 43-55.
    9. Guimond, Lisa & Kim, Chankon & Laroche, Michel, 2001. "An investigation of coupon-prone consumers: Their reactions to coupon feature manipulations," Journal of Business Research, Elsevier, vol. 54(2), pages 131-137, November.
    10. Aradhna Krishna & Z. John Zhang, 1999. "Short- or Long-Duration Coupons: The Effect of the Expiration Date on the Profitability of Coupon Promotions," Management Science, INFORMS, vol. 45(8), pages 1041-1056, August.
    11. Ajay Kalra & Mengze Shi, 2002. "Consumer Value-Maximizing Sweepstakes & Contests: A Theoretical and Experimental Investigation," Review of Marketing Science Working Papers 1-3-1008, Berkeley Electronic Press.
    12. Sanjay K. Dhar & Jagmohan S. Raju, 1998. "The Effects of Cross-Ruff Coupons on Sales and Profits," Management Science, INFORMS, vol. 44(11-Part-1), pages 1501-1516, November.
    13. Laroche, Michel & Kalamas, Maria & Huang, Qinchao, 2005. "Effects of coupons on brand categorization and choice of fast foods in China," Journal of Business Research, Elsevier, vol. 58(5), pages 674-686, May.

    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:9:y:1990:i:2:p:125-145. 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.