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ent for different types of coupons, and that there
is a decreasing rate of coupon redemption as
orange juice price increases. The analysis shows
that the redemption level varies with coupon ef-
fort, face value of coupon, age of program, and
orange juice price.

Orange juice price plays an important role in
coupon redemption, and the price effect is most
significant in newspaper coupon redemption and
least important in magazine coupon redemption.
The study failed to establish a relationship be-
tween orange juice price and in-pack or on-pack
coupon redemption. The benefits and costs of
coupon promotional programs to Florida’s
orange juice industry and the advertising effects
of couponing programs on the consumption of
orange juice will be explored as evaluation of
FDOC advertising programs continues.

REFERENCES

A. C. Nielsen Company. NCH Reporter, Number 3, 1980.

Bowman, Russ. “Advice OfRedeeming Value.” Advertising Age, May 4, 1981, pp. 58, 59.

Chow, Gregory C. “Test of Equality between Sets of Coefficients in Two Linear Regression.”
Econometrica 28(1960:591-605.

Fuller, Wayne and George E. Battese. “Transformations for Estimation of Linear Models with
Nested-Error Structure.”
J. Amer. Statis. Assoc. 68(1973):626-32.

Haugh, Louis J. “How Coupons Measure Up.” Advertising Age, June 8, 1981, pp. 58-63.

Hoch, Irving. “Estimation of Production Function Parameters Combining Time-Series and Cross-
Section Data.”
Econometrica 30(1962):34-53.

Johnson, Paul R. “Some Aspects of Estimating Statistical Cost Functions,” J. Farm Econ. 46
(1964):179-87.

Kmenta, Jan. Elements of Econometrics. New York: Macmillan Co., 1971.

Maddala, G. S. “The Use of Variance Components Model in Pooling Cross-Section and Time Series
Data.”
Econometrica 39(1971):341-58.

Marketing Research Corporation of America. Consumer Purchases and Average Prices, selected is-
sues.

Mundlak, Yair. “Empirical Production Function Free of Management Bias.” J. Farm Econ. 43
(1961):44-56.

NPD Research Inc. NPD Purchase Data. December 1977 to January 1981.

Telser, L. G. “Another Look at Advertising and Concentration,” J. Industrial Economics. 18(1969):
85-94.

Wallace, T. D. and Ashiq Hussian. “The Use of Error Components Models in Combining Cross Section
with Time Series Data.”
Econometrica 37(1969):55-72.

Ward, Ronald W. and James E. Davis. “Coupon Redemption,” J. Adver. Res. 18(1978a)∙.51-58.

Ward, Ronald W. and James E. Davis. “A Pooled Cross-Section Time Series Model of Coupon Pro-
motions.”
Amer. J. Agr. Econ. 60(1978b):393-401.

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