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Some major grocery chains also produce digital coupons that may be loaded onto the retailer's loyalty card at home, or at a coupon dispensing machine located in store. In , the top five vehicles for distributing consumer packaged goods coupons in the U. There are coupon-providing websites that provide customers with coupons of various stores.
These sites accumulate coupons from various sources. Clipping coupons from newspapers has been the most popular way to obtain coupons, though Internet and Mobile Phone coupons are gaining wide popularity. Some retailers and companies use verification methods such as unique barcodes , coupon ID numbers, holographic seals, and watermarked paper as protection from unauthorized copying or use.
Other than newspaper, there are also coupon book publishers and retailers who compile vouchers and coupons into books, either for sale or free. Online retailers often refer to coupons as "coupon codes", "promotional codes", "promotion codes", "discount codes", "keycodes", "promo codes", "surplus codes", "portable codes", "shopping codes", "voucher codes", "reward codes", "discount vouchers", "referral codes" or "source codes".
Internet coupons typically provide reduced cost or free shipping, a specific dollar, percentage discount or to earn cashback while some offer to encourage consumers to purchase specific products or to purchase from specific retailers. Because paper coupons would be difficult to distribute and redeem, typically secret words or codes are distributed for consumers to type in at checkout.
Marketers can use different codes for different channels or groups in order to differentiate response rates. A mobile coupon is an electronic ticket solicited and or delivered to a mobile phone that can be exchanged for financial discount or rebate when purchasing product or service.
Coupons are usually issued by manufacturers of consumer packaged goods or retailers, to be used in retail stores as part of a sales promotion. The customer redeems the coupon at store or online. In some cases, customers may redeem the mobile coupon at the point of sale. What is unique about mobile coupons is the memory of information in the coupons often outlast the expiration dates of the coupons themselves, triggering actual purchases at later dates.
Mobile coupons are popular among U. The primary success factors for the SMS campaigns are discount size, how the discount value is framed as a gift or percent off and the timing of the campaign.
Many retailers support the redemption of email and paper coupons via mobile devices. In addition to distributing such offers via their own email lists, SMS subscriptions, and apps, they are also often made available through coupon applications. A mobile app coupon can be either a regular coupon for redemption discount value or discount percentage used at checkout distributed by the app-makers or unique, personal sharing codes owned by each user to recruit new users with referral benefits e.
The latter form requires personal sharing on behalf of users to their personal networks. Depending on the jurisdiction , coupons may or may not reduce the sales tax which must be paid by the consumer. This is often determined by who sponsors the coupon. If the coupon is issued by the retailer, the product was never offered at the original price and the coupon represents a reduction in the amount paid and the tax.
If the coupon is issued by the manufacturer, the original price is still paid but some of the price is covered by the manufacturer instead of the consumer and the full price remains taxable.
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