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Promoting Fruit and Vegetable Consumption: Are Coupons More Effective Than Pure Price Discounts?

Author

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  • Dong, Diansheng
  • Leibtag, Ephraim S.

Abstract

The U.S. Department of Agriculture administers food and nutrition assistance programs that promote fruit and vegetable consumption. But consumption remains relatively low among program recipients as well as among the general U.S. population. The perceived high cost of produce is often cited as a deterrent to more consumption. This study looks at coupons and price discounts, two methods of lowering the cost of fruits and vegetables, and uses household purchase data and a consumer demand model to examine each method. Coupons influence consumer behavior through a price-discount effect and an informational/advertising effect. Because of this dual effect, the use of a coupon to increase fruit and vegetable purchases may be more effective than a pure price-discount policy or other noncoupon promotion. Assuming a coupon usage rate of 10 to 50 percent, lowering prices through a “10 percent off” coupon would increase average weekly fruit and vegetable quantities purchased by 2 to 11 percent, as compared with a 5- to 6-percent effect for a pure price discount.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:uersrr:94853
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    File URL: http://purl.umn.edu/94853
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    Cited by:

    1. Brown, Mark G., 2010. "Coupon Impacts on Orange Juice Demand Based on Time-Series and Cross-Sectional Data," Research Papers 2010 104352, Florida Department of Citrus.
    2. Berning, Joshua P., 2014. "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 (IFAMA), vol. 17(A).
    3. Klerman, Jacob Alex & Bartlett, Susan & Wilde, Parke & Olsho, Lauren, 2013. "The Healthy Incentives Pilot and Fruit and Vegetable Intake: Interim Results," 2014 Allied Social Science Association (ASSA) Annual Meeting, January 3-5, 2014, Philadelphia, PA 161655, Agricultural and Applied Economics Association.
    4. Steele, Marie & Weatherspoon, Dave, 2016. "Demand for Varied Fruit and Vegetable Colors," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235912, Agricultural and Applied Economics Association.
    5. Chen, Lijun & Parcell, Joe & Moreland, Jill, 2016. "Consumer Preference for Sampling at Farmers Markets," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230054, Southern Agricultural Economics Association.

    More about this item

    Keywords

    fruit and vegetable consumption; coupons; price discounts; consumer demand; dual effect of coupons; informational advertising effects; Food Consumption/Nutrition/Food Safety;

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