Magazine article Drug Topics

Coupon Use by Manufacturers, Consumers on the Decline

Magazine article Drug Topics

Coupon Use by Manufacturers, Consumers on the Decline

Article excerpt

Manufacturers are using fewer coupons, but the coupons they issue have more of a marketing punch.

Consumer packaged goods manufacturers distributed 268.5 billion coupons in 1996, a decrease of 8% from the previous year, according to NCH Promotional Services, Lincolnshire, III., which tracks the use of coupon promotions.

Meanwhile, consumers redeemed 5.32 billion coupons last year, down 8.6% from 1995's redemption total.

Why did consumers use fewer coupons? NCH suggested that consumer confidence reached a six-year high toward the middle of last year, which left consumers less anxious about finding savings through the use of coupons.

In another trend, the face value of the average coupon increased in 1996 by an average of 1.5%, to 69 cents; that increase, however, lagged behind the consumer price index (CPI), which rose by 3.3%, NCH pointed out.

Effectively, this meant that the face value of coupons decreased by an average of 2.3%. In years gone by, coupon values have usually grown at a rate of more than double the CPI. As a result, "consumers effectively missed out on more than $200 million in savings this year," commented Charles Brown, vip. of marketing at NCH.

Another change last year was that manufacturers decreased by 9. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.