Coupon
From Wikipedia, the free encyclopedia
In marketing a coupon is a ticket or document that can be exchanged for a financial discount or rebate when purchasing a product. Customarily, coupons are issued by manufacturers of consumer packaged goods or by retailers, to be used in retail stores as a part of sales promotions. They are often widely distributed through mail, magazines, newspapers, the Internet, and mobile devices such as cell phones. Internet coupons have become popular recently, because there is no postal cost, and the printing cost is borne by the user (who prints the coupons) rather than the businesses issuing them. Mobile coupons have emerged as a new and green alternative as no printing is required whatsoever. Mobile coupons as a method of coupon redemption are gaining in popularity as more consumers utilize their mobile devices for uses beyond voice.
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[edit] Origin
In 1887, the Coca-Cola Company was incorporated with Asa Candler as one of the partners. He transformed Coca-Cola from an insignificant tonic into a profitable business by using innovative advertising techniques. The key to this growth was Candler's ingenious marketing including having the company's employees and sales representatives distribute complimentary coupons for Coca-Cola[1]. Coupons were mailed to potential customers and placed in magazines. The company gave soda fountains free syrup to cover the costs of the free drinks. It is estimated that between 1894 and 1913 one in nine Americans had received a free Coca-Cola, for a total of 8,500,000 free drinks. By 1895 Candler announced to shareholders that Coca-Cola was served in every state in the United States.
[edit] History
Coupons first saw widespread use in the United States in 1909 when C. W. Post conceived the idea to help sell breakfast cereals and other products. Today, more than 700 corporations offer coupons for discounts on products or services. Each year, coupons for consumer packaged goods generate nearly 3 billion dollars in transactions within the U.S. alone.[2]
There are many different types of online coupons such as discounts, free shipping, first-time customer coupons, and free giveaways.
[edit] Internet coupons
Online retailers often refer to Internet coupons as "coupon codes," "promotional codes," "promotion codes," "discount codes," "key codes," "promo codes," "surplus codes," "portable codes," "shopping codes," "voucher codes," or "source codes."[citation needed] Internet coupons typically provide for reduced cost or free shipping, a specific dollar or percentage discount, or some other offer to encourage consumers to purchase specific products or to purchase from specific retailers.
[edit] Taxation
Depending on the jurisdiction, coupons may or may not reduce the sales tax which must be paid by the consumer. A true coupon which reduces the selling price of a taxable item or group of items normally also reduces the tax. However, a "coupon" may also be treated as scrip, which is tendered as a payment, and therefore does not reduce the taxable amount. This is the case with the coupon-eligible converter boxes in the U.S., which compensate in part for the forced conversion to digital TV.
[edit] Pronunciation
The word is of French origin, pronounced [kuˈpɔ̃], in Britain and Canada it is pronounced /ˈkuːpɒn/ KOO-pon. A common alternate American pronunciation is /ˈkjuːpɒn/ "CUE-pon".
[edit] Other uses
In finance, with respect to bonds, a coupon is the interest rate that the issuer pays to the bond holders.
In manufacturing and materials science, a coupon is a small piece of material used for testing or further processing, compare billet.
"Football pools" promoters in the United Kingdom also use this name when referring to the paper grids which gamblers fill in to bet on the results of football (soccer) fixtures. On these, players will mark a number of crosses (x) against individual game listings to indicate which they believe will end as a draw, or tied match. Rewards for correct forecasting can be of very high monetary value.
Love coupons and love coupon books are popular gifts on Valentine's Day and other anniversary days. They can be purchased in printed format, downloaded in digital format or be handmade.
[edit] References
- ^ Coca-Cola 120th Anniversary The Coca-Cola Company Time Line - 120 Years of Innovation
- ^ 2009 NCH Coupon Facts[1]
[edit] See also
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Look up coupon in Wiktionary, the free dictionary. |
