Coupon Redemption and the Demand for Frozen Concentrated Orange Juice: A Switching Regression Analysis

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Abstract
A switching regression model was estimated and used to study the impact of Florida Department of Citrus coupon promotional programs on the demand for frozen concentrated orange juice. The empirical results show that discounts and information provided by coupons were effective in increasing the demand for FCOJ, and that the FDOC's coupon programs had positive impacts on the probability of using coupons for purchasing FCOJ. Moreover, different types of coupon promotions had different impacts, and coupon users and nonusers demonstrated different degrees of response to price changes.

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