The theory behind Internet coupons is the same as that of its low-tech counterpart, the shopping coupons delivered in the weekly advertiser. Internet coupons offer a considerable discount to the buyer in order to get him or her to try the product or the retailer. They offer real shopper savings, sometimes as much as 25 to 30% and allow the consumer to try something her or she may have been considering at a more attractive price that makes the purchase not so risky. For retailers, coupon distribution and use does result in higher sales volume but also cuts into the profit margin, making them a generator of turnover but not necessarily increased profit. However, most online retailers think any disadvantage is offset by the usefulness of coupons as a marketing and advertising tool. Coupons are popular with Internet users and they do bring shoppers in to the virtual stores. One Internet market research firm estimates that 40% of U.S. online shoppers use Internet coupons.
Internet coupons may have increased value when used as a market research tool. Coupons are an easy way to track the popularity of items and programs. The can be a good indicator of the online marketplace in...
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