coupons should be understood as an economic benefit that the consumer recognizes (Kim and Kwon, 2005; Park and Kim, 2009). Much research has observed the psychological aspects of consumer coupon use, including enjoyment and pride. Mittal (1994) and Schindler (1989) noted that the feeling of competence and intelligence that accompanies coupon use contributes to consumers’ belief of themselves as smart shoppers, which in turn plays an important role in their coupon use.
With respect to the coupon value in coupon redemption, a positive relationship exists between coupon use and monetary value (Ward and Davis, 1978). When consumers recognize the benefits of coupons, they have a strong intention to redeem the coupons, and as such, there is a positive relation between coupon value and coupon
redemption intention (Mittal, 1994). Therefore, Hypothesis 3 is proposed as follows:
H3: Coupon value has a positive effect on coupon redemption intention.
Brand loyalty refers to the consumer attitude consistently favoring a specific brand and the tendency to make repeat purchases of the same brand even when alternatives are available (Jacoby and Kyner, 1973; Jacoby and Chestnut, 1978; Park, 2006; Kim and Park, 2007; Park and Kim, 2009). According to Oliver (1999), brand loyalty is “a deeply held commitment to rebuy or repatronize a preferred product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing.”
Lin et al. (2000) defined that brand loyalty refers to the consumer’s behavior of repeatedly purchasing a specific brand over a certain period of time. Thus, loyal consumers of a specific brand make use of promotional opportunities, and are less sensitive to promotional activities of other brands (Neslin and Shoemaker, 1993; Raghubir, 1998). Thus, Hypothesis 4 is proposed as follows:
H4: Brand loyalty has a positive effect on coupon redemption intention.
In addition, regular consumers who make frequent purchases or those who are familiar with the product make use of coupons even if their face value is relatively low (Nielsen, 1980). Thus, Hypothesis 5 is proposed as follows:
H5: Brand loyalty has a positive effect on coupon value.
4. Empirical Analysis
4.1 Measures