Food Coupons - Perspective and Update

Abstract

It started with wooden nickels. Coupons are issued by over 2,000 manufacturers and are used by 86% of all U.S. households. Over 140 billion were distributed in 1984, with a 6% redemption rate (over 8 billion) and with an average face value over 25 cents plus an eight cent handling fee. The industry has grown consistently for over a dozen years, and is the largest single category of consumer promotion at $2.5 billion. The average household redeems about three coupons a week, with the more affluent redeeming more than lower income groups. Once associated almost exclusively with packaged goods, marketers in virtually every sector of our economy now use coupons and rebates in some form.