TABLE 5 Profit/Sales at Different Coupon Face Values for Brand B in Market 1 Coupon Value Total Profit Total Sales (Cents) (Dollars) (Units) 0 204.19 216.97 40 206.75 224.67 45 205.09 225.69 50 202.83 226.73 55 199.99 227.79 60 196.64 228.88 65 192.78 229.99 70 188.46 231.14 75 183.71 232.30 80 178.55 233.5 85 173.03 234.73 90 167.15 235.99 95 160.94 237.28 100 154.42 238.6 Impact of the Coupon Face-value Sensitivity Parameter ([[Gamma].sub.1]) on Optimal Face Value: The fraction of sales to the CP segment that are coupon sales is modeled by Equation 1.
We do not set [[Gamma].sub.0] to zero, as typically even for coupons with relatively higher face values, the fraction of sales made with coupons tends to be much smaller than one.
(1995) reports that about 327 billion coupons were issued in 1994 and that the average face value of coupons issued by manufacturers increased by 7% in that year.
It aimed at making the face value of gold money equivalent to its worth as raw material in order to prevent further increases in exports.
Rather, the king's concern that face value was the same as the intrinsic worth of the coin served a quite different principle.
The king maintained the inherent authority of the sign by ensuring that the face value of gold coins was equal to their intrinsic worth.
If coupon users experience significant enhancement of pride (of being smart, of "beating the system") through the mere use of a cents-off coupon, regardless of the face value or habits for using coupons, a positive influence of the coupon-use variable on market responses is likely to occur.
Overall, the following hypothesis is established in order to show that shoppers' purchases (market responses) are influenced the most by the amount of face value, followed by the frequency of coupon use, and the mere use (or not) of a cents-off coupon.
"The average face value of a coupon is now $1.18, and what is driving that high value are kits and high-ticket items," says Dan Kitrell, vice president, account solutions, at Edina, Minn.-based TNS Media Intelligence, Marx's parent company.
In the first half of 2006, average face value of coupons rose 10.9% across all nonfoods segments, led by household products, with a 22% increase to $1.11, driven by expanded activity in support of high-value products.
That's much the effect that Hwang is aiming for with Face Value, a farce about race being directed by Jerry Zaks.
When you consider the conceit of Face Value, such concerns are understandable.