Influence of Price of Coupons on Redemption Rates

Vishal Lala, University of Wisconsin - Green Bay

Influence of Price of Coupons on Redemption Rates

 

Abstract

 

This paper investigates the effect of having consumers pay for a coupon booklet on its subsequent usage. The literature on sunk costs predicts that consumers who pay for a coupon booklet and thereby incur a sunk cost will be more likely to invest the effort to redeem the coupon(s). In a series of four studies, it was found that putting a price on a coupon booklet increased the likelihood of coupon usage and this effect was driven by self-justification concerns of the consumer.
[ to cite ]:
Vishal Lala (2006) ,"Influence of Price of Coupons on Redemption Rates", in NA - Advances in Consumer Research Volume 33, eds. Connie Pechmann and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 251-251.