Abstract
Many supermarkets double manufacturer coupens. Are consumers' grocery bills lowered as a result? Our study of two double coupon supermarkets shows that for every ten cents of double-coupon value redeemed, the corresponding shelf price at a double coupon supermarket is higher by an estimated 3.5 cents compared to the price at other supermarkets. Given the higher shelf prices, the data also suggest that the majority of customers do not save money at double coupon stores, and adjust their shopping to account for the retail promotion.
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This research was completed while Hess was visiting the MIT's Sloan School of Management and he thanks the Marketing Group for providing such a stimulating environment. We both thank Jeongwen Chiang, Wujin Chu, John Hauser, Caroline Henderson, John Little, Scott Neslin, and Birger Wernerfelt for helpful comments and Vicki Ruffin for assistance on data collection.
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Hess, J.D., Gerstner, E. Double couponing: Pricing and consumer perspectives. Marketing Letters 4, 153–163 (1993). https://doi.org/10.1007/BF00994073
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DOI: https://doi.org/10.1007/BF00994073