The Effect of Retail Grocery Coupons for Breakfast Cereals on Household Purchasing Behavior
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We examine the affect of retail and manufacturer coupons on the nutritional quality of breakfast cereal purchases made by households. Using household level purchase data we find that coupon usage has a significant impact on the nutritional quality of cereals purchased by households. Specifically, we find that the average sugar content decreases and the fiber content increases. This suggests that coupons have a positive impact on the nutritional quality of cereals purchased by households, holding all other factors constant.
Given the prolific use of coupons by households and the fact that they offer both a price discount and an advertisement for products, they might be an effective way to help guide consumers to healthier food choices.