Sunday, May 1, 2011

Chapter 16 Coupons and Sales Promotion

I personally very rarely use coupons, however, I like to receive them and do feel like I am receiving a fun money saving offer when I redeem them. I believe most people like to receive coupons and a fair number do redeem them honestly. Coupon sites such as coupon.mom and redplum. com provide weekly printable coupons for their members.
Arguments for the use of coupons;
·         Coupons make it possible to offer a price reduction only to those consumers who are price- sensitive.
·         Coupons make it possible to reduce the retail price without relying on retailer cooperation
·         Coupons are highly regarded as a promotional technique for generating trial.
·         Coupons can encourage repeat usage among current users or, encourage non users to try the brand.
·         Coupons can be a useful promotional tool for established products and, can get users to try a new, improved version of a brand.
Arguments against the use of coupons
·         Difficult to estimate how many consumers will use a coupon and when.
·         No immediate response to coupon, it may take between two to six months to redeem.
·         Low redemption rates and high cost
·         Coupon Fraud
·         Coupons used by product user’s instead of attracting new users. 

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