Coupon Promotion

This paper was written with the purpose of defining under which conditions the form of a coupon promotion can be effective. This paper will show that couponing is a profitable strategy for manufacturers in many situations and that generally it is in their interest to offer coupons in reduced price form. This article will also show that if the manufactured product is a substitutable good, it will also generally be in the manufacturer's interest to practice couponing rather than other forms of promotions. With this in mind, this paper brings together different visions and preliminary studies on the subject while providing the reader with a synthesized, clear, argued and enhanced version of the conditions under which couponing proves advantageous. It also contains a brief overview on the subject, a comparison between the different types of coupons and an analysis of a survey on the subject, offering the reader a selection of tools on the conditions of implementation and the type of coupon to be issued in a given situation.