Coupon book

From CEOpedia | Management online
Coupon book
See also

Coupon book – a collection of paper cards which provide a discount for particular service or product, in given time, to specific customer.

Coupon books in advertisement

Having your part in a coupon book can be really beneficial for a brand that isn't very recognizable. Business will often offer a lot of value in coupon book to grow the economic incentive to buy a product in a short period of time. What is very important, is that companies often aren't additionally charged for their advertisement in the book, they only pay for what they offer in their coupon. There are also cases when owners are obligated to pay a fee in order to be included. In the beginning, the customer buys a product or service from a brand, because of the discount he or she got from the coupon. For the business owners it is more important, that this customer either comes back, or promotes their product or service to his or her friends, family or co-workers. This strategy, however can backfire, when organization receives no repeat business[1].

Coupon books as marketing strategy

When it comes to offering coupon books from marketing perspective, the main issue is whether it is even a necessary thing to do. Studies have shown, that the most meaningful element is company's present market share. For any business that wants to be noticed, participating in coupon book is a huge opportunity to get attention of customers, both local and from the outside. However, if brand is already of significant size, then offering coupon books won't bring any new customers, and people will just use their discounts for products or services, that they would pay full price for anyway. The person in charge of marketing has to make the decision, what is acceptable threshold of given market share[2].

What coupon books mean for customers

Offering coupon books is a way to change buying practices of a customer. Coupon book values range from couple greenbacks, up to tens of thousands dollars. Of course to get whole value of a book, one would have to use all coupons, which is nearly impossible to do for a casual client. Researches have shown, that during evaluation of discounts, people usually depend their spending choices on savings percentage correlated with individual promotion. That percentage is the ratio of how much is the discount worth, to the original price of product[3].


  1. Reeves J. (1997)
  2. Wilson J.G., Chen J. (2018)
  3. He J., Sha Y., Xianghua L., Park C.W. (2018)


Author: Bartłomiej Bargiel