The Effect of Breakfast Cereal Coupons on the Nutritional Quality of Household Purchases

Grocery coupons require consumers to purchase specific products. This can alter a consumer's shopping basket. We examine what effect, if any, coupon use has on the nutritional quality of consumer purchases. We focus on breakfast cereals and evaluate their nutritional quality using fat, fiber, protein, sodium and sugar content. We find cereal purchases made with manufacturer or retailer coupons have greater sodium and sugar content. The change in fat, fiber and protein content are not economically significant. As part of a comprehensive marketing strategy, firms should evaluate how their customers use coupons to manage the cost and nutritional quality of their purchases.