SUPPORTING A HIGHER SHELF PRICE THROUGH COUPON DISTRIBUTIONS
Naufel J. Vilcassim
(Assistant Professor of Marketing, Kellogg Graduate School of Management, Northwestern University, Evanston, Illinois)
Dick R. Wittink
(Professor of Marketing and Quantitative Methods, and Director of the Doctoral Program, Graduate School of Management, Cornell University, Ithaca, New York)
247
Abstract
Promotional expenditures for manufacturer coupon distributions have increased rapidly during the last decade. Marketing professionals have criticized this trend. We discuss how coupon distributions allow manufacturers to price discriminate between market segments. Such discrimination should allow a firm to increase the shelf price of the brand. We find that instant coffee prices reflect this idea, and show that coupon distributions can be profitable for mature brands.
Citation
Vilcassim, N.J. and Wittink, D.R. (1987), "SUPPORTING A HIGHER SHELF PRICE THROUGH COUPON DISTRIBUTIONS", Journal of Consumer Marketing, Vol. 4 No. 2, pp. 29-39. https://doi.org/10.1108/eb008194
Publisher
:MCB UP Ltd
Copyright © 1987, MCB UP Limited