Do consumers always prefer coupons with a large discount? A meta-analysis

Abstract

Purpose

The aim of this research is to quantitatively synthesize empirical findings of the effect of discount level on consumer response to the coupon.

Design/methodology/approach

The authors used the meta-analysis method to synthesize coupons' discount level effects on consumer response. Meta-regression was used to examine the moderating factors that affect the relationship between discount level and consumer response.

Findings

The average effect size of the discount level is 0.331, indicating that higher discount levels lead to higher consumer responses. The effect of discount level on consumer response to the coupon is stronger when the discount is displayed in proportion format (vs amount format), when consumers are distant (vs near) to the coupon-issuing stores, and when consumers have not opted-in to receive promotional information. The discount level effect is weaker for coupons that can be redeemed online (vs offline only), for hedonic products (vs utilitarian products) and for products of real brands.

Originality/value

From information processing and cost–benefit trade-off perspectives, this research proposes a comprehensive research framework that synthesizes a variety of contextual factors. It identifies several contextual factors that may reconcile several inconsistent findings in the existing literature. It also addresses how the new-technology related factors affect coupon redemption under different discount levels.

Citation

Cui, N., Xiao, Y., Hu, Y., Xu, L. and Hu, Y. (2021), "Do consumers always prefer coupons with a large discount? A meta-analysis", Journal of Contemporary Marketing Science, Vol. 4 No. 2, pp. 185-204. https://doi.org/10.1108/JCMARS-06-2021-0022