How do consumers’ cultural backgrounds and values influence their coupon proneness? A multimethod investigation

Abstract

Although coupons are very effective in increasing sales, a major challenge marketers face with coupons is the low redemption rates. Consequently, marketers are continuously trying to identify consumers who are more or less likely to respond to couponing efforts, in order to better direct coupons to segments high in coupon proneness and hence increase redemption rates. The current research identifies consumers’ cultural backgrounds and values as important determinants of their likelihood of redeeming coupons. Across five studies, we find that Asians (vs. Caucasians), Indians (vs. Americans), and, more generally, consumers with an interdependent (vs. independent) self-construal are more likely to use coupons because they are more motivated to engage in self-regulation, which is proposed to enhance coupon proneness. We conclude with the implications of these findings for marketers, such as for their segmentation and targeting endeavors. We also provide specific tools that marketers could use, both inside and outside the store, to influence consumers’ use of coupons.