When Not Redeeming a Coupon Feels Like Missing More Than Its Value

Coupon redemption rates are often too low. How can marketers increase them without increasing costs? We suggest that when consumers are offered a coupon that induces a choice between two redemption options (e.g., either a Knicks game or the Wicked musical), they may feel that by not redeeming it they lose both options. This feeling reflects an inflated perception of loss (since the two options are mutually-exclusive), which is suggested to be driven by mental-simulations of exploiting both options. Seven studies show that factors that induce such mental-simulations increase consumers’ loss perceptions and subsequent coupon redemption.



Citation:

Liad Weiss and Ran Kivetz (2011) ,"When Not Redeeming a Coupon Feels Like Missing More Than Its Value", in E - European Advances in Consumer Research Volume 9, eds. Alan Bradshaw, Chris Hackley, and Pauline Maclaran, Duluth, MN : Association for Consumer Research, Pages: 517.

Authors

Liad Weiss, Columbia University, USA
Ran Kivetz, Columbia University, USA



Volume

E - European Advances in Consumer Research Volume 9 | 2011



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