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

Raj Sethuraman · John D. Mittelstaedt

49 citations0/0 files storedPsychology and Marketing

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Consumer Market Behavior and Pricing Supply Chain and Inventory Management Consumer Retail Behavior Studies

Abstract

Abstract 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.

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References

1986The theory and practice of econometrics 1989Price-Induced Patterns of Competition 1984A Price Discrimination Theory of Coupons 1985Consumer Promotions and the Acceleration of Product Purchases 1988Measuring the Effect of Retail Store Promotions on Brand and Store Substitution 1987The Effects of a Direct Mail Coupon on Brand Choice Behavior 1984Optimal Pricing and Advertising Policies for New Product Oligopoly Models 1980The Impact of Advertising on the Price of Consumer Products

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2020Private label management: A literature review 2004Strategic Effects of Private Labels and Horizontal Integration 2009Alternative panel models to evaluate the store brand market share 2017Antecedents and consequences of private brand purchase 2005The different faces of coupon elasticity 2012Abstracting Empirical Generalizations from Private Label Brand Research

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