Coupons are slips issued either by the manufacturer or retailer of consumer goods, to be used as a ticket to avail discount on the price of products purchased or freebies. The impact of inflation on consumer goods have skyrocketed the price of several essential commodities to such an extent where most people are forced to reduce their savings to be able to procure essential commodities. The rising trend can lead to as big a peril as another recession, if consumers choose to consume less. The most important significance of grocery store coupons arises in this environment of shooting prices, to encourage consumers to consume just as much as they would normally do in the absence of rising costs. By doing so, grocery coupons, improve the reputation of the manufacturing firm or retailer as a ‘consumer status aware’ group.
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Besides functioning as promoters of business, coupons are also assumed to target specific consumer groups who are price sensitive, i.e., alter consumption rate with product price variation. This information, manufacturers believe, will greatly help them in setting up prices for their products, without adversely affecting earlier profit margins and scope for expansion. It is believed to be one of the strongest means to promote products and services provided.
