The determinants of coupon usage

Abstract

This paper uses a large sample of survey data to investigate the empirical determinants of coupon usage. The broad set of control variables allows for comparisons of the relative importance of individual determinants and groups of determinants. We find that the set of variables measuring consumer shopping habits and attitudes explains more of the variation in coupon usage across households than the group of socioeconomic and demographic variables. However, the latter variables are jointly significant, and their estimated coefficients have the expected signs.