Coupon book: Difference between revisions
From CEOpedia | Management online
Ceopediabot (talk | contribs) m (Typos, typos fixed: aren’t → aren't (2), isn’t → isn't, ’s → 's) |
m (Text cleaning) |
||
| (5 intermediate revisions by 2 users not shown) | |||
| Line 1: | Line 1: | ||
'''Coupon book''' - a '''collection of paper cards''' which provide a discount for particular [[service]] or [[product]], in given time, to specific [[customer]]. | |||
'''Coupon book''' | |||
==Coupon books in advertisement== | ==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<ref>Reeves J. (1997)</ref>. | 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<ref>Reeves J. (1997)</ref>. | ||
==Coupon books as marketing strategy== | ==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<ref>Wilson J.G., Chen J. (2018)</ref>. | 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<ref>Wilson J.G., Chen J. (2018)</ref>. | ||
==What coupon books mean for customers== | ==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<ref> He J., Sha Y., Xianghua L., Park C.W. (2018)</ref>. | 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<ref> He J., Sha Y., Xianghua L., Park C.W. (2018)</ref>. | ||
==Examples of Coupon book== | |||
* '''Restaurant Coupon Book''': A restaurant coupon book is a collection of paper cards that provide discounts for meals or drinks at a particular restaurant. It usually contains offers such as buy-one-get-one-free entrees or drinks, a percentage discount on the total bill, or a free appetizer or dessert. | |||
* '''Grocery Coupon Book''': A grocery coupon book is a collection of paper cards that provide discounts for groceries at a particular supermarket or grocery store. It usually contains offers such as buy-one-get-one-free items, a percentage discount on certain items, or a free item with a minimum purchase. | |||
* '''Entertainment Coupon Book''': An entertainment coupon book is a collection of paper cards that provide discounts or free admission to entertainment venues such as movies, concerts, sporting events, and amusement parks. It usually contains offers such as buy-one-get-one-free tickets, a percentage discount on tickets, or a free item with a minimum purchase. | |||
* '''Clothing Coupon Book''': A clothing coupon book is a collection of paper cards that provide discounts for clothing at a particular store or outlet. It usually contains offers such as buy-one-get-one-free items, a percentage discount on certain items, or a free item with a minimum purchase. | |||
==Advantages of Coupon book== | |||
Coupon books offer many advantages to both customers and businesses alike. Here are some of the benefits they provide: | |||
* Increased [[customer loyalty]] - coupon books encourage customers to return to the same business and take advantage of the discounts. | |||
* Increased sales - customers are more likely to make a purchase if the coupon book offers a discount. | |||
* Brand recognition - coupon books provide an opportunity for businesses to increase their brand recognition and visibility. | |||
* Increased word-of-mouth - customers who take advantage of the discounts are more likely to tell their friends and family about the business, creating a ripple effect of potential customers. | |||
* Increased profitability - businesses are able to increase their profits by providing discounts to customers. | |||
Overall, coupon books provide a great opportunity for businesses to increase their customer loyalty, sales, visibility, and profitability. | |||
==Limitations of Coupon book== | |||
Coupon books can be a great way to save [[money]], but there are several limitations to consider when using them. These include: | |||
* Time - Coupon books often have expiration dates, so customers must be sure to redeem their coupons before the deadlines. | |||
* Availability - Coupon books may be limited to certain products or services, so customers may not be able to use them for the items they [[need]]. | |||
* Location - Coupon books may be valid only at specific stores, so customers may not be able to use them if they shop at another store. | |||
* Restrictions - Coupon books may have restrictions on how many coupons can be used in a given time period, or the coupons may only be valid on certain days. | |||
* Price - Coupon books may require customers to pay a fee upfront, so they must be sure they will be able to use the coupons before they purchase them. | |||
==Other approaches related to Coupon book== | |||
A coupon book is a great way to provide discounts for products and services, but there are several other approaches to providing discounts to customers. These include: | |||
* '''Cash-back programs''': These programs allow customers to receive a percentage of their purchase back in cash. This is an effective way to incentivize customers to make larger purchases, as the more they buy, the more they will receive back. | |||
* '''Discounts on bulk purchases''': Bulk purchases are a great way to save money, and many businesses offer discounts on large purchases. This can be a great way to encourage customers to buy more of a product or service. | |||
* '''Product bundling''': Bundling products together is a great way to make them more attractive to customers, as they can get more for their money. This can be a great way to encourage customers to buy multiple products or services. | |||
* '''Loyalty programs''': Loyalty programs are a great way to reward customers who keep coming back to your business. These programs often involve giving customers rewards points for every dollar they spend, which can be redeemed for discounts or free items. | |||
In summary, coupon books are just one way to provide discounts for customers, but there are many other approaches such as cash-back programs, discounts on bulk purchases, product bundling, and loyalty programs. Each of these approaches can be used to incentivize customers to purchase more, and to reward those who keep coming back to your business. | |||
==Footnotes== | ==Footnotes== | ||
<references /> | <references /> | ||
{{infobox5|list1={{i5link|a=[[Special offering]]}} — {{i5link|a=[[Convenience product]]}} — {{i5link|a=[[Sales discount]]}} — {{i5link|a=[[Incentive marketing]]}} — {{i5link|a=[[Unsought good]]}} — {{i5link|a=[[Optional product pricing]]}} — {{i5link|a=[[Affinity Card]]}} — {{i5link|a=[[Push money]]}} — {{i5link|a=[[Differential pricing]]}} }} | |||
==References== | ==References== | ||
| Line 36: | Line 54: | ||
* Thankaraju P. (2018), [https://books.google.pl/books?id=o12IDwAAQBAJ&pg=PT286&dq=coupon+book&hl=pl&sa=X&ved=0ahUKEwi4q4-qoMvhAhUntIsKHdJQD1cQ6AEIRjAE#v=onepage&q=coupon%20book&f=false ''Startup 500 Business Ideas: Business Strategies and 500 Business How to Start''], Nest Fame Creators, Maharashtra | * Thankaraju P. (2018), [https://books.google.pl/books?id=o12IDwAAQBAJ&pg=PT286&dq=coupon+book&hl=pl&sa=X&ved=0ahUKEwi4q4-qoMvhAhUntIsKHdJQD1cQ6AEIRjAE#v=onepage&q=coupon%20book&f=false ''Startup 500 Business Ideas: Business Strategies and 500 Business How to Start''], Nest Fame Creators, Maharashtra | ||
* Wilson J.G., Chen J. (2018), ''On the optimality of coupon books'', Annals of Operations Research, Vol. 268 Issue 1/2, September 2018 | * Wilson J.G., Chen J. (2018), ''On the optimality of coupon books'', Annals of Operations Research, Vol. 268 Issue 1/2, September 2018 | ||
[[Category: Marketing]] | [[Category: Marketing]] | ||
{{a|Bartłomiej Bargiel}} | {{a|Bartłomiej Bargiel}} | ||
Latest revision as of 19:19, 17 November 2023
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].
Examples of Coupon book
- Restaurant Coupon Book: A restaurant coupon book is a collection of paper cards that provide discounts for meals or drinks at a particular restaurant. It usually contains offers such as buy-one-get-one-free entrees or drinks, a percentage discount on the total bill, or a free appetizer or dessert.
- Grocery Coupon Book: A grocery coupon book is a collection of paper cards that provide discounts for groceries at a particular supermarket or grocery store. It usually contains offers such as buy-one-get-one-free items, a percentage discount on certain items, or a free item with a minimum purchase.
- Entertainment Coupon Book: An entertainment coupon book is a collection of paper cards that provide discounts or free admission to entertainment venues such as movies, concerts, sporting events, and amusement parks. It usually contains offers such as buy-one-get-one-free tickets, a percentage discount on tickets, or a free item with a minimum purchase.
- Clothing Coupon Book: A clothing coupon book is a collection of paper cards that provide discounts for clothing at a particular store or outlet. It usually contains offers such as buy-one-get-one-free items, a percentage discount on certain items, or a free item with a minimum purchase.
Advantages of Coupon book
Coupon books offer many advantages to both customers and businesses alike. Here are some of the benefits they provide:
- Increased customer loyalty - coupon books encourage customers to return to the same business and take advantage of the discounts.
- Increased sales - customers are more likely to make a purchase if the coupon book offers a discount.
- Brand recognition - coupon books provide an opportunity for businesses to increase their brand recognition and visibility.
- Increased word-of-mouth - customers who take advantage of the discounts are more likely to tell their friends and family about the business, creating a ripple effect of potential customers.
- Increased profitability - businesses are able to increase their profits by providing discounts to customers.
Overall, coupon books provide a great opportunity for businesses to increase their customer loyalty, sales, visibility, and profitability.
Limitations of Coupon book
Coupon books can be a great way to save money, but there are several limitations to consider when using them. These include:
- Time - Coupon books often have expiration dates, so customers must be sure to redeem their coupons before the deadlines.
- Availability - Coupon books may be limited to certain products or services, so customers may not be able to use them for the items they need.
- Location - Coupon books may be valid only at specific stores, so customers may not be able to use them if they shop at another store.
- Restrictions - Coupon books may have restrictions on how many coupons can be used in a given time period, or the coupons may only be valid on certain days.
- Price - Coupon books may require customers to pay a fee upfront, so they must be sure they will be able to use the coupons before they purchase them.
A coupon book is a great way to provide discounts for products and services, but there are several other approaches to providing discounts to customers. These include:
- Cash-back programs: These programs allow customers to receive a percentage of their purchase back in cash. This is an effective way to incentivize customers to make larger purchases, as the more they buy, the more they will receive back.
- Discounts on bulk purchases: Bulk purchases are a great way to save money, and many businesses offer discounts on large purchases. This can be a great way to encourage customers to buy more of a product or service.
- Product bundling: Bundling products together is a great way to make them more attractive to customers, as they can get more for their money. This can be a great way to encourage customers to buy multiple products or services.
- Loyalty programs: Loyalty programs are a great way to reward customers who keep coming back to your business. These programs often involve giving customers rewards points for every dollar they spend, which can be redeemed for discounts or free items.
In summary, coupon books are just one way to provide discounts for customers, but there are many other approaches such as cash-back programs, discounts on bulk purchases, product bundling, and loyalty programs. Each of these approaches can be used to incentivize customers to purchase more, and to reward those who keep coming back to your business.
Footnotes
| Coupon book — recommended articles |
| Special offering — Convenience product — Sales discount — Incentive marketing — Unsought good — Optional product pricing — Affinity Card — Push money — Differential pricing |
References
- He J., Sha Y., Xianghua L., Park C.W. (2018), Do Consumers Always Spend More When Coupon Face Value is Larger? The Inverted U-Shaped Effect of Coupon Face Value on Consumer Spending Level, "Journal of Marketing", Vol. 82 Issue 4, 2018
- Krafft M., Hesse J., Höfling J., Peters K., Rinas D. (2007), International Direct Marketing: Principles, Best Practices, Marketing Facts, Springer, Berlin
- Reeves J. (1997), Coupon books produce mixed results, say area restaurateurs, New Orleans CityBusiness, Vol. 18, Issue 20, 1997
- Thankaraju P. (2018), Startup 500 Business Ideas: Business Strategies and 500 Business How to Start, Nest Fame Creators, Maharashtra
- Wilson J.G., Chen J. (2018), On the optimality of coupon books, Annals of Operations Research, Vol. 268 Issue 1/2, September 2018
Author: Bartłomiej Bargiel
