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Beyond Marketing
BizReport : Research : June 13, 2007
Online coupon usage increases with income
According to new survey results from PriceRunner.com, U.S. consumers with higher incomes are more likely to use online coupons.
The use of coupons is usually attributed to low income households. However, PriceRunner.com’s latest survey of 1,000 consumers with internet access found that coupon usage increased with income.
While 58 percent of respondents with yearly household incomes of less than $35,000 had used an online coupon at least once in the past six months, nearly three-quarters (74 percent) with incomes between $35,000 and $74,000 had done so, according to survey results.
When it came to higher income households, earning $75,000 or more, coupon usage rose again, as did frequency. Eighty-four percent of the higher income households had used online coupons at least once in the last six months, of which 48 percent had used online coupons four or more times in the same period.
Under a quarter, 23 percent, of those households with incomes under $35,000 used online coupons four or more times in the last six months with slightly more, 30 percent, doing so in the $35,000 to $74,000 bracket.
Similar patterns emerged with mail coupons, but the relationship with income was not as pronounced.
Tags: coupons, household income, PriceRunner.com
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3 Comments | Post a comment
I can believe this. Recently in MN their was a local site called couponimpact.com I have been using it all the time. I think these will pop up everywhere.
That shouldn't surprise anyone. In 2007, households with lower incomes were a lot less likely to have internet access than households in the high-coupon-likelihood bracket this article is describing.
Also, the likelihood of using coupons is moderated by the consumer's perception of what coupons stand for and how they will be perceived if they use them. On the internet, the lack of face-to-face interaction during the purchase eliminates the possibly negative (lower class) association of using coupons that middle class consumers might hold.
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Very interesting information regarding the income levels and online coupon usage ratios.
I enjoyed your perspective.
I have worked in the direct marketing industry for over 10 years and have seen my share merchants who target that "under $35,000" income bracket. Perhaps they would be better served to target a higher range or communicate a message that speaks to the other portion of the audience they assume are not interested in using online coupons at all.
Higher ROI?
I would be interested to know the categorical break down within these online coupon usage statistics.
It would be interesting to compare the categorical coupon usages to the average online spending trends to find any potential correlation.
It would also be intreging to note if these coupon stats would translate to local coupon markets.
Anyway, thats my 2¢
Thank you for the opportunity to respond