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An Analysis Of Factors Associated With Consumers' Use Of Grocery Coupons

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  • Goodwin, Barry K.

Abstract

A conceptual model of grocery coupon usage is developed and maximum likelihood estimates of a Tobit model are used to assess the influence of several economic and demographic variables on consumers' use of grocery coupons. Specific factors considered include income, age, household size, race, education, shopping practices, and size and composition of grocery transactions. The analysis includes a combination of scanner and survey data collected from 1,047 consumers. Results confirm strong effects for household size, race, shopping practices, and size and composition of grocery transactions.

Suggested Citation

  • Goodwin, Barry K., 1992. "An Analysis Of Factors Associated With Consumers' Use Of Grocery Coupons," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(1), pages 1-11, July.
    • Handle: RePEc:ags:jlaare:30728
    DOI: 10.22004/ag.econ.30728
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    References listed on IDEAS

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    1. Hanemann, W Michael, 1984. "Discrete-Continuous Models of Consumer Demand," Econometrica, Econometric Society, vol. 52(3), pages 541-561, May.
    2. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-1551, November.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    4. Amemiya, Takeshi, 1973. "Regression Analysis when the Dependent Variable is Truncated Normal," Econometrica, Econometric Society, vol. 41(6), pages 997-1016, November.
    5. Lee, Jonq-Ying & Brown, Mark G. & Schwartz, Brooke, 1986. "The Demand For National Brand And Private Label Frozen Concentrated Orange Juice: A Switching Regression Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(1), pages 1-7, July.
    6. Chakravarthi Narasimhan, 1984. "A Price Discrimination Theory of Coupons," Marketing Science, INFORMS, vol. 3(2), pages 128-147.
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    Citations

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    Cited by:

    1. Larson, Ronald B., 1994. "Testing Promotions In Different Markets Is Essential," Promotion in the Marketing Mix: What Works, Where and Why, April 28-29, 1994, Toronto, Canada 279600, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    2. Brehanu, Amare & Fufa, Bekabil, 2008. "Repayment rate of loans from semi-formal financial institutions among small-scale farmers in Ethiopia: Two-limit Tobit analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2221-2230, December.
    3. Meloyan, Artak & Bakhtavoryan, Rafael, 2017. "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.
    4. Ephraim Nkonya & Ted Schroeder & David Norman, 1997. "Factors Affecting Adoption Of Improved Maize Seed And Fertiliser In Northern Tanzania," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 1-12, January.
    5. Ron Cronovich & Rennae Daneshvary & R. Keith Schwer, 1997. "The determinants of coupon usage," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1631-1641.
    6. 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.
    7. Chiou-Wei, Song-Zan & Inman, J. Jeffrey, 2008. "Do Shoppers Like Electronic Coupons?," Journal of Retailing, Elsevier, vol. 84(3), pages 297-307.
    8. Song Zan Chiou-Wei, 2004. "The determinants of direct mail coupon usage revisited: Evidence from count panel data models," Agribusiness, John Wiley & Sons, Ltd., vol. 20(2), pages 189-200.
    9. 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.

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    Keywords

    Consumer/Household Economics; Marketing;

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