Choice of non-monetary incentives and coupon redemption intention: Monetary saving and price consciousness as moderators

• Published in: International journal of hospitality management 2021-04, Vol.94, p.102816, Article 102816
• Main Authors: Fong, Lawrence Hoc Nang, Nong, Sunny Zhenzhen, Leung, Daniel, Ye, Ben Haobin
• Format: Article
• Language: English
• Subjects: Choice; Conditional moderated-mediation; Coupon redemption; Face value; Fast casual restaurant; Sales promotion
• ISSN: 0278-4319; 1873-4693
• DOI: 10.1016/j.ijhm.2020.102816

•The value of non-monetary incentive can be increased by giving consumers the choice.•Choice of non-monetary incentive increases coupon redemption intention.•Attitude towards the coupon promotion is a significant mediator.•High monetary saving can be substituted by choice of non-monetary incentive.•The substitution effect is salient among low price-conscious consumers. Coupon promotion is widespread in the fast casual restaurant sector. As monetary saving offered in the coupons is costly to suppliers, this study examines: (1) if the provision of choice of non-monetary incentive can substitute high monetary saving in their positive influences on consumers’ redemption intention; and (2) if the substitution effect is contingent on consumers’ level of price consciousness. Drawing from three experimental studies, the results consistently showed that offering choice of non-monetary incentive was effective in increasing consumers’ redemption intention through enhancing their attitude towards the coupon promotion. The effect of offering choice of non-monetary incentive substituted that of high monetary saving, but the substitution effect was merely salient among low price-conscious consumers while the floodlight analysis revealed the point that bifurcates high (versus low) level of price consciousness. The findings add knowledge to the sales promotion and hospitality literature. Meaningful implications are recommended for fast casual restauranteurs.