INCREASING REPURCHASE RATES - A REAPPRAISAL OF COUPON EFFECTS

One criticism of the use of sales promotions, particularly couponing e fforts, is that they may contribute to the deterioration of a brand's consumer franchise. A cosumer may be less inclined to repurchase a cou poned brand than a brand bought without a coupon. Cognitive evaluation theory is used as a means of further understanding this phenomenon, a nd a study is conducted to test specific hypotheses derived from the a pplication of this theory. As hypothesized, this study presents eviden ce that allowing coupon users to choose between two different deals on the same brand may increase the repurchase rates of the couponed bran d. (C) 1994 John Wiley & Sons, Inc.