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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.

Suggested Citation

  • 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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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2005.00756.x
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    1. Meloyan, Artak & Bakhtavoryan, Rafael, "undated". "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.
    2. 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).
    3. 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.
    4. 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).
    5. 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).
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Hayden Stewart & Noel Blisard, 2008. "Who Pays More for Food?," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 150-168, February.
    11. Berning, Joshua P. & Zheng, Hualu, "undated". "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.
    12. 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.
    13. Bakhtavoryan, Rafael & Capps, Jr., Oral, . "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. 49(2).
    14. Berning, Joshua P., . "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.
    15. 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.
    16. 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.
    17. Meloyan, Artak & Bakhtavoryan, Rafael, "undated". "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.
    18. 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.
    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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