Effects of coupons on brand categorization and choice of fast foods in China

The major objective of this study is to explore the effects of coupons on consumers' brand categorization and choice processes using fast-food restaurants in China. Following a description of the Chinese fast-food industry, we build our conceptual framework by combining the couponing literature with the brand categorization and choice literatures. Using the data we collected in Beijing, we find both direct and cross-advertising effects. In other words, the presence of a coupon for a focal brand positively (negatively) impacts consumers' attitudes and intentions toward that brand (competing brands). We discuss our results in light of the important implications they have for brand management in multibrand situations and international management of sales promotions. (c) 2003 Elsevier Inc. All rights reserved.