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Article: Do Consumers Always Spend More When Coupon Face Value is Larger? The Inverted U-Shaped Effect of Coupon Face Value on Consumer Spending Level

TitleDo Consumers Always Spend More When Coupon Face Value is Larger? The Inverted U-Shaped Effect of Coupon Face Value on Consumer Spending Level
Authors
KeywordsConsumer spending
Inverted U-shape
Product-line coupon
Savings percentage
Threshold
Issue Date2018
PublisherAmerican Marketing Association. The Journal's web site is located at http://www.marketingpower.com
Citation
Journal of Marketing, 2018, v. 82 n. 4, p. 70-85 How to Cite?
AbstractCommonly, a coupon can be applied to one of several vertically differentiated products sold at different prices within the same product line of a brand. With such a product-line coupon, consumers need to decide on the specific product to buy, resulting in different levels of consumer spending. One field data set and four lab experiments demonstrate that the relationship between coupon face value and consumer spending level may not always be intuitively positive; under certain circumstances, it could take an inverted U-shape. The authors develop a threshold-based model to explain the inverted U-shaped effect of coupon face value on consumer spending level and show that this effect occurs when the price level of products is high, when consumers have a strong saving orientation, when they experience low information load from processing a small number of products, when they are inclined to engage in thorough product comparison, or when they have a weak preexisting preference for a specific level of product benefit.
Persistent Identifierhttp://hdl.handle.net/10722/258985
ISSN
2019 Impact Factor: 5.266
2015 SCImago Journal Rankings: 6.612
ISI Accession Number ID

 

DC FieldValueLanguage
dc.contributor.authorJia, HM-
dc.contributor.authorYang, S-
dc.contributor.authorLu, X-
dc.contributor.authorPark, CW-
dc.date.accessioned2018-09-03T03:59:38Z-
dc.date.available2018-09-03T03:59:38Z-
dc.date.issued2018-
dc.identifier.citationJournal of Marketing, 2018, v. 82 n. 4, p. 70-85-
dc.identifier.issn0022-2429-
dc.identifier.urihttp://hdl.handle.net/10722/258985-
dc.description.abstractCommonly, a coupon can be applied to one of several vertically differentiated products sold at different prices within the same product line of a brand. With such a product-line coupon, consumers need to decide on the specific product to buy, resulting in different levels of consumer spending. One field data set and four lab experiments demonstrate that the relationship between coupon face value and consumer spending level may not always be intuitively positive; under certain circumstances, it could take an inverted U-shape. The authors develop a threshold-based model to explain the inverted U-shaped effect of coupon face value on consumer spending level and show that this effect occurs when the price level of products is high, when consumers have a strong saving orientation, when they experience low information load from processing a small number of products, when they are inclined to engage in thorough product comparison, or when they have a weak preexisting preference for a specific level of product benefit.-
dc.languageeng-
dc.publisherAmerican Marketing Association. The Journal's web site is located at http://www.marketingpower.com-
dc.relation.ispartofJournal of Marketing-
dc.rightsJournal of Marketing. Copyright © American Marketing Association.-
dc.subjectConsumer spending-
dc.subjectInverted U-shape-
dc.subjectProduct-line coupon-
dc.subjectSavings percentage-
dc.subjectThreshold-
dc.titleDo Consumers Always Spend More When Coupon Face Value is Larger? The Inverted U-Shaped Effect of Coupon Face Value on Consumer Spending Level-
dc.typeArticle-
dc.identifier.emailJia, HM: mhjia@hku.hk-
dc.identifier.authorityJia, HM=rp02165-
dc.description.naturelink_to_subscribed_fulltext-
dc.identifier.doi10.1509/jm.14.0510-
dc.identifier.scopuseid_2-s2.0-85048814264-
dc.identifier.hkuros288602-
dc.identifier.volume82-
dc.identifier.issue4-
dc.identifier.spage70-
dc.identifier.epage85-
dc.identifier.isiWOS:000434798700007-
dc.publisher.placeUnited States-
dc.identifier.issnl0022-2429-

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