Coupons and private labels: A cross-category analysis of grocery products

This article examines the influence of coupons on private label shares of grocery products. The impact of national brand and private label coupons, distributed by manufacturers and retailers, is examined. A consumer framework and a typology of coupon effects are developed to explain different types...

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Bibliographic Details
Published in:Psychology & marketing 1992-11, Vol.9 (6), p.487-500
Main Authors: Sethuraman, Raj, Mittelstaedt, John
Format: Article
Language:English
Subjects:
Consumer behavior
Discount coupons
House brands
Impacts
Market shares
Regression analysis
Retail sales
Studies
Supermarkets
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Summary:This article examines the influence of coupons on private label shares of grocery products. The impact of national brand and private label coupons, distributed by manufacturers and retailers, is examined. A consumer framework and a typology of coupon effects are developed to explain different types of coupon usage behavior. Aggregate scanner panel data on 480 product categories are used in the analysis. Both the type of coupon and the method of distribution (by manufacturer or by retailer) are found to be important determinants of private label share response. Couponing activities by the national brand manufacturer are negatively related to private label share, thus indicating that they may be effective deterrents of private label penetration. However, couponing activities related to private labels do not help increase private label shares. The surprising finding is that national brand store couponing activity is positively related to private label share.
ISSN:0742-6046
1520-6793
DOI:10.1002/mar.4220090606