Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, April 6, 1991 TAG: 9104060185
SECTION: BUSINESS PAGE: A-8 EDITION: METRO
SOURCE: Associated Press
DATELINE: CHICAGO LENGTH: Medium
"In times of recession, manufacturers revert to the basics: trade deals for the grocers, and cents off to the consumer," said Kermit Myers, vice president of the New York-based Advertising Checking Bureau.
While consumers use only a tiny percentage of the coupons that manufacturers distribute, manufacturers still believe they are an effective way to advertise and lure customers, Myers said.
Most coupons - almost 90 percent - were distributed through free-standing inserts in Sunday newspapers last year, said the study conducted by Summary Scan, a Chicago-based division of the Advertising Checking Bureau.
Summary Scan, which tracks coupons and their distribution for manufacturers, based its study on an analysis of newspapers, magazines, and direct mail promotions in 57 major markets around the country, Myers said.
The 306.8 billion coupons distributed marks an increase of 16.7 percent over the 263 billion Summary Scan said were circulated in 1989 - likely because of a downturn in the nation's economy, the study said.
"Since more consumers consider using coupons in economic downturns, marketers felt compelled to offer coupons or lose market share to those that do," company director Bill Green said in a release.
Companies that handle coupon redemptions estimate that only about 4 percent of all coupons are ever used. Summary Scan said manufacturers spent about $4.8 billion on redemptions in 1990.
Michael Rourke, a spokesman for the Great Atlantic & Pacific Tea Company Inc., said the Montvale, N.J.-based grocery chain has seen an upswing in the use of coupons at the chain's 1,280 stores in recent months.
"Our operations are in Ontario and the Northeastern United States, which has been hard hit by the recession," Rourke said Friday. "We have seen consumers adjust their spending in a number of ways to save money. The . . . increased use of coupons is one of those ways."
A study done earlier this year by NCH Promotional Services Inc. indicated American consumers saved $3.52 billion through the use of coupons in 1990, a 6.4 percent increase over 1989 coupon savings.
Chicago-based NCH, which describes itself as the world's largest coupon processor, said their research indicates 75 percent of the nation's grocery shoppers will increase their use of coupons in response to a recessionary climate.
But that study placed the number of coupons distributed in 1990 at 279.4 billion, compared with Summary Scan's 306.8 billion. NCH said about 7.1 billion coupons were redeemed last year, compared to the 9.79 billion Summary Scan said were cashed in.
by CNB