Analyzing Incremental Sales from a Direct Mail Coupon Promotion
Open Access
- 1 July 1989
- journal article
- research article
- Published by SAGE Publications in Journal of Marketing
- Vol. 53 (3), 66-78
- https://doi.org/10.1177/002224298905300308
Abstract
Several authors have noted that the profitability of a coupon promotion depends on the incremental sales generated by the coupon. However, most prior research on coupon promotions has focused on redemption rates and little is known about the characteristics of households that make incremental purchases. The authors develop and test several hypotheses about the characteristics of households that make incremental purchases in response to a direct mail coupon promotion. For the product tested, coupons produced greater incremental sales among households that were larger, more educated, and were homeowners. The findings suggest that directing coupons to the most responsive market segments can increase profits significantly.Keywords
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