Coupon Impacts on Orange Juice Demand Based on Time-Series and Cross-Sectional Data
A recent study by Dong and Leibtag found coupons were effective in increasing fruit and vegetable demand. The current study supports these finding for the OJ product group. The analysis focused on the informational/advertising or demand shift impact of coupons, as opposed to the price impact which could not be determined since data on prices were a weighted average for coupon users and non-users. The results indicate a 6% increase in OJ gallons sales when coupons are used. The coupon variable used in the analysis, however, measures the extent of coupon usage but not intensity. As such, the results provide a partial view of the impact of coupons and further analysis on data that also includes some measure of intensity is needed to more fully evaluate this marketing tool.
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- Dong, Diansheng & Leibtag, Ephraim S., 2010. "Promoting Fruit and Vegetable Consumption: Are Coupons More Effective Than Pure Price Discounts?," Economic Research Report 94853, United States Department of Agriculture, Economic Research Service.
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