Factors influencing coupon redemption rates among shoppers in the Durban area.

Abstract

There are a number of different sales promotion strategies that marketers employ in an attempt to appeal to consumers and encourage them to buy. In recent years, couponing has emerged as a pop culture phenomenon in some parts of the world. However, many questions remain unanswered concerning the factors that influence coupon redemption rates among shoppers. Research shows a significant amount of low coupon redemption in South Africa, but no substantial research has thus far revealed an in-depth understanding of why this might be so. This study seeks to explore the reasons for low FMCG coupon redemption, as well as potential strategies to address this problem, with specific focus on consumers in the Durban area. Most existing research on the use of coupons explores sales promotion, with coupons investigated only briefly and superficially; such research has tended to focus on the advantages and disadvantages of coupon use. This study aimed to determine the extent to which shoppers in Durban use coupons when purchasing FMCG goods. It also sought to explore what factors encourage and discourage FMCG coupon redemption among the Durban shoppers. Lastly, it aimed to understand how FMCG coupon redemption rates among this group can be increased. In terms of the research methodology, taking an angle of qualitative exploratory study was relevant in order to gain initial insights into an area about which not much is already known. The study was conducted in Durban and the target population comprised both males and females aged 20 years to 50 years. Purposive sampling was used to select participants. A sample of 36 Durban residents participated in one of four focus group discussions. Guba’s model of trustworthiness was used to assess the rigour of the study. Data (audio recordings/transcripts) was analysed via qualitative content analysis. The main findings of the study include that the monetary value of coupons is a key factor influencing coupon redemption. Convenience (in terms of the types of coupons offered, the method of distribution and ease of redemption) is another important factor; participants indicated that in-store instant coupons are attractive for these reasons. Participants also prefer coupons for products that they purchase often, and not on brands that they do not already purchase. In particular, many are not willing to try other brands of personal care products, even with the added incentive of a coupon.