In this study, we examine the effects that opportunity cost, income effect, coupon proneness and devaluation effect have on coupon redemption intention. Overall, the results of a survey received from approximately 2250 respondents suggest that prospect of savings and coupon proneness are positively associated, while opportunity cost is inversely associated with coupon redemption intention. The results are consistent across several sub-samples of grocery stores, which further underline the robustness of our hypotheses. Our analyses are more exhaustive than and therefore, contribute to, extant literature on promotions using coupons, because we base our study on behavioral, social and economic factors that influence coupon redemption intentions.
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