Influence of coupon duration on consumer's behaviour: Three or more brands in the market

This research deals with the issues concerning how consumers change their purchase behavior if one of brands in the market prolongs its coupon duration while there are more than two brands. If they extend coupon duration of a brand, consumers increase purchase of the brand with coupons. But they increase or reduce purchase of competing brands with coupons depending on the condition of the market. Increase of purchase of the brand with prolonged coupons stems from reducing purchase of the consumer's most favorite brands with regular price and their less preferred brands with coupons. On the other hand, consumers who prefer the brand at in-between level tend to reduce purchase of competing brands with coupons under certain conditions. Therefore firms which do not have dominant market positions have strong incentive for strategic alliance in terms of coupon duration.