The Effect of Product Sampling and Couponing on Purchase Behaviour: Some Empirical Evidence

Abstract

This article reports the results of three experiments that assessed the performance of mail-drop product samples, discount coupons and cashbacks among non-users of three consumer products: liquid detergent, instant coffee and children's toothpaste. For each product, households were assigned to one of four treatment groups: sample plus discount coupon or cashback; sample only; discount coupon or cashback only, and a control group (no promotion). Treatments which included samples achieved significantly higher purchase rates than treatments which did not, while including discount coupons with samples produced slightly higher purchase rates than samples delivered alone. Cashback coupons were as effective as product samples in producing significantly higher purchase rates than the no promotion control. These results suggest both product sampling and cashbacks promote incremental sales, but that discount coupons may only subsidize purchases that would otherwise be made at full retail prices.

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