Coupons can be an effective way to induce trial. They can introduce a new product, maintain/ increase market share, attract first-time users and increase brand awareness and switching. A recent study showed that key grocery shoppers in larger, middle-income households are more likely to use coupons.
However, there are some serious drawbacks to the practice of couponing. First, coupons decrease top-line revenue by decreasing the amount of money collected by a business through some sort of discount. Continue reading