COUPON CHARACTERISTICS AND REDEMPTION INTENTIONS - A SEGMENT-LEVEL ANALYSIS

The authors investigate how different segments of consumers react to d ifferent coupon characteristics, such as face value and method of dist ribution. They utilize a latent segmentation approach to identify the underlying segments. The empirical analysis suggests that different se gments of consumers place varying emphasis with regard to economic ben efits, psychic benefits, effort costs, and substitution costs. A furth er examination of the derived segments with respect to consumer correl ates such as psychological, attitudinal, behavioral, and demographic c haracteristics reveals that coupon-related consumer characteristics, r ather than demographics, exhibit significant and meaningful difference s across these segments. Implications of the segment-level analysis fo r evaluating coupon drops and managing promotional expenditures are al so discussed. (C) 1998 John Wiley & Sons, Inc.