A study of the relationship between discount coupons and repeat behavior of customers for pizza restaurants

Abstract

Currently, coupons are the most popular and relied-upon form of consumer sales promotion in the United States (Schultz et al., 1993). The primary purpose of this study was to examine the relationship between discount coupons and repeat purchase in pizza restaurants. The objective of the study was to determine whether the relationship between pizza coupon usage and repeat purchase behavior exists. The variables, such as demographics and psychographics, were used to examine and describe those who make repeat purchases. Also, this study examined which type of coupon distribution resulted in the most frequent redemption.

A survey instrument was utilized to gather information. Consumers in Blacksburg, Virginia were the sample for this study due to the ease of following up the questionnaire and obtaining addresses of consumers. The questionnaire was mailed to them asking about their frequency of coupon usage, and whether coupons increase the frequency of restaurant visits.

This study will be beneficial to pizza restaurant marketers because the results from this study demonstrated that: 1) a relationship between coupon usage and frequency of repeat purchases of pizza exists; 2) a relationship between pizza coupon usage and the usage of coupons when trying a new restaurant exists; 3) a relationship between pizza coupon usage and age is statistically significant even though the analysis does not indicate which age groups are significantly different; 4) a relationship between income and frequency of pizza coupon usage is not statistically significant.

The results show that respondents preferred to redeem coupons when coupons were given in the form of a dollar off and pizza coupons were most often redeemed when they were distributed through direct mail. About 78 percent of the respondents did not receive coupons through door-hanging. The results are useful for pizza restaurant managers for market segmentation and designing coupon promotions.