View source for Coupon

{{short description|Document, paper or electronic, to provide a discount on goods or services}}
{{for multi|coupons for interest payments on bonds|Coupon (finance)|other uses}}
{{pp-semi|small=yes}}
[[File:Tem phiếu thời bao cấp.jpg|thumb|Food stuff ration coupons types I–V for direct laborers and workers in [[Vietnam]], 1976–1986]]
In marketing, a '''coupon''' is a ticket or document that can be redeemed for a financial [[discounts and allowances|discount]] or [[rebate (marketing)|rebate]] when purchasing a [[product (business)|product]].

Customarily, coupons are issued by manufacturers of consumer packaged goods<ref name=CoupoMan.NYT2010>
   {{cite news |newspaper=[[The New York Times]]
   |url=https://www.nytimes.com/2010/12/26/business/26digi.html
   |title=Someday, Store Coupons May Tap You on the Shoulder
   |author=Randall Stross  |date=December 25, 2010}}</ref> or by retailers, to be used in retail stores as a part of [[sales promotion]]s.  They are often widely distributed through mail, coupon envelopes, magazines, newspapers, the Internet (social media, email newsletter), directly from the retailer, and mobile devices such as cell phones.

''The New York Times'' reported "more than 900 manufacturers' coupons were distributed" per household, and that "the [[United States Department of Agriculture]] estimates that four families in five use coupons.<ref name=CoupoStor.NYT1982/> "Only about 4 percent" of coupons received were redeemed.<ref name=CoupoStor.NYT1982/> Coupons can be targeted selectively to regional markets in which price competition is great.

Most coupons have an expiration date, although American military commissaries overseas honor manufacturers' coupons for up to six months past the expiration date.<ref>{{cite web |last=Reed |first=Charlie |title=AAFES, DeCA still accepting expired coupons |work=Stars and Stripes |url=http://www.stripes.com/news/aafes-deca-still-accepting-expired-coupons-1.148031 |access-date=1 July 2013}}</ref>

==Pronunciation==
The word is of French origin, pronounced {{IPA|fr|kupɔ̃|}}. In Britain, the United States, and Canada it is pronounced {{IPAc-en|ˈ|k|uː|p|ɒ|n}} {{respell|KOO|pon}}. A common alternate American pronunciation is {{IPAc-en|ˈ|k|juː|p|ɒ|n}} {{respell|KEW|pon}}.<ref name="Divided">{{cite web | url=http://allthingsd.com/20111106/a-nation-divided-on-how-to-say-the-word-coupon/ | title=A Nation Divided on How to Say the Word "Coupon" | publisher=Dow Jones & Company Inc. | date=November 6, 2011 | access-date=May 8, 2014 | author=Duryee, Tricia}}</ref>

==History==

===Origin===
During the great famine of 18 [[Islamic calendar|AH]] (638 CE), [[Umar]], the second ruler of the Islamic Caliphate, introduced several reforms such as the introduction of food rationing using coupons, which were given to those in need and could be exchanged for wheat and flour.<ref>Hamid, Shadi (August 2003), "An Islamic Alternative? Equality, Redistributive Justice, and the Welfare State in the Caliphate of Umar", Renaissance: Monthly Islamic Journal, 13 (8) (see [https://web.archive.org/web/20030901100155/http://www.renaissance.com.pk/Augvipo2y3.html online])</ref>
[[File:19th century Coca-Cola coupon.jpg|thumb|250px|Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first distributed in 1888 to help promote the drink.  By 1913, the company had redeemed 8.5 million tickets.<ref  name=CoupoCoke.Wired>{{cite magazine |title=First Coupon Ever |last=Geuss |first=Megan |magazine=[[Wired (magazine)|Wired]] |volume=18 |number=11 |date=October 2010 |page=104}}</ref>]]
[[The Coca-Cola Company|Coca-Cola]]'s 1888-issued "free glass of" is the earliest documented coupon.<ref  name=CoupoCoke.Wired/><ref name="coke">{{cite web
   |title=The Chronicle Of Coca-Cola: The Candler Era
   |url=http://www.coca-colacompany.com/stories/the-chronicle-of-coca-cola-the-candler-era
   |website=[[The Coca-Cola Company|Coca-Cola Company]]
   |access-date=20 July 2016
   |archive-date=10 July 2016
   |archive-url=https://web.archive.org/web/20160710155406/http://www.coca-colacompany.com/stories/the-chronicle-of-coca-cola-the-candler-era
   |url-status=dead
   }}</ref> Coupons were mailed to potential customers and placed in magazines. 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, Coke was served in every state in the United States.<ref>{{cite magazine
    |url= https://business.time.com/2010/04/06/the-history-of-coupons/
    |title=The History of Coupons |date=April 6, 2010  |magazine=[[Time (magazine)|Time]] |author=  Brad Tuttle}}</ref>

In 1929, [[Betty Crocker]] began a loyalty points program and began issuing coupons that could be used to redeem for [[Premium (marketing)|premiums]] like free flatware. In 1937, the coupons were printed on the outside of packages. The loyalty program ended in 2006,<ref>{{Cite news |last=Baldelli |first=Ann |date=7 April 2006 |title=No longer in the mix |url=https://www.newspapers.com/article/the-day-no-longer-in-the-mix/182686195/ |access-date=9 October 2025 |work=The Day |pages=1, [https://www.newspapers.com/article/the-day/182686329/ 2A]}}</ref> one of the longest loyalty programs.<ref name="Reichheld-tle">[[Fred Reichheld]] (1996) ''The Loyalty Effect'', Harvard Business School Press, Boston, 1996.</ref>

In Australia consumers first{{dubious|date=July 2022}} came in contact with couponing when a company called [[Shopa Docket]] promoted offers and discounts on the back of shopping receipts in 1986.<ref>{{cite web|last1=Grey|first1=Justin|title=Meet the king of Australia's docket advertising industry|url=http://www.mybusiness.com.au/case-studies/864-meet-the-king-of-australias-docket-advertising-industry|website=My Business (Australia)|date=11 January 2013|access-date=20 July 2016|archive-date=20 August 2016|archive-url=https://web.archive.org/web/20160820092008/http://www.mybusiness.com.au/case-studies/864-meet-the-king-of-australias-docket-advertising-industry|url-status=dead}}</ref>

==Types and uses==
Coupons offer different types of values, such as discounts, free shipping, buy-one get-one, trade-in for redemption, first-time customer coupons, free trial offer, launch offers, festival offers, and free giveaways. Similarly, there are varied uses of coupons which include: to incentivize a purchase, reduce a price, provide a free sample,<ref name=CoupoSam>{{cite news |newspaper=[[The New York Times]]
|url=https://www.nytimes.com/1998/01/02/business/media-business-advertising-more-makers-consumer-goods-are-delivering-samples.html
|title=More makers of consumer goods are delivering samples of their products right to the front door
|author=Dana Canedy  |date=January 2, 1998}}</ref> or to aid marketers in understanding the demographics of their customer.

===Function===
Coupons can be used to research the price sensitivity of different groups of buyers (by sending out coupons with different dollar values to different groups). Time, location and sizes (e.g. five pound vs. 20 pound bag)<ref name=CouPoTatoes>{{cite news
   |newspaper=[[The New York Times]]
   |url=https://www.nytimes.com/1982/04/14/garden/best-buys.html
   |title=Best Buys |date=April 14, 1982}}</ref> affect prices; coupons are part of the [[marketing mix]].<ref>McKenzie, Richard B. ''Why Popcorn Costs So Much at the Movies: And Other Pricing Puzzles''. {{ISBN|978-0-387-76999-8}}, 2008.</ref> So is knowing about the customer.<ref name=CoupoPrivacy.NYT2012>
{{cite news |newspaper=[[The New York Times Magazine]]
|url=https://www.nytimes.com/2012/02/19/magazine/shopping-habits.html
|title=How Companies Learn Your Secrets
|author=Charles Duhigg  |date=February 16, 2012}}</ref><ref name=CouPoTatoes/>

===Grocery coupons===
Grocery coupons come in two major types:
* store coupons: issued by the store itself. Some stores will also accept store coupons issued by competitors.
* Coupons issued by the manufacturer of a product<ref name=CoupoMan.NYT2010/> may be used at any coupon-accepting store that carries that product. Part of their function is to advertise their offerings and attract new customers.

Some grocery stores regularly double or even triple the value of coupons to bring customers into their stores.<ref name=CoupoStor.NYT1982>{{cite news |newspaper=[[The New York Times]]
|url=https://www.nytimes.com/1982/05/05/garden/store-coupon-use-soars-and-spreads.html
|title=Store-Coupon use sores and spreads |date=May 5, 1982}}</ref> Periodic special events double or triple coupon values on certain days or weeks.<ref name="About">{{cite web
|url=http://couponing.about.com/od/groceryzone/a/doublecoupons.htm
|title=Grocery Stores That Double Coupons
|accessdate=2010-04-13
|archive-date=2009-09-19
|archive-url=https://web.archive.org/web/20090919045359/http://couponing.about.com/od/groceryzone/a/doublecoupons.htm
|url-status=dead
}}</ref>

==Conveyance==
Coupons exist in more than one form, and are acquired by customers in a variety of ways.

===Paper===
Historically, verifying the discount offered has been via presenting coupons clipped from newspapers<ref name=CoupoMan.NYT2010/> or received in the mail. Some retailers and companies use verification methods such as unique [[barcode]]s, coupon ID numbers, holographic seals, and watermarked paper as protection from unauthorized copying or use. Other than newspapers, there are also coupon book publishers and retailers who compile [[voucher]]s and coupons into books, either for sale or free.

===Electronic===
By the mid-1990s, "couponing had also moved to the internet."<ref>{{cite news |newspaper=[[Advertising Age]]
|url=https://adage.com/node/1532031/printable/print
|title=printable |date=September 15, 2003}}</ref> An early term was '''{{visible anchor|clipless coupons}}'''.<ref name=Clipless.IW>{{cite magazine
   |magazine=[[InformationWeek]] |date=February 22, 1999
   |title=Clipless Coupons |author=Gregory Dalton |page=87}}</ref> Later on the term "downloadable coupons" came into use.<ref name=Clipless.CBS>{{cite news 
|url=https://detroit.CBSlocal.com/2011/12/15/consumers-find-more-ways-to-save-with-downloadable-coupons-on-redplum-com
|title=Consumers Find More Ways to Save With Downloadable Coupons on Redplum.com
|quote=Filed Under: Clipless Coupons, Redplum
|date=December 15, 2011}}</ref> Options include:
* '''Internet coupons''': [[Online retailers]] often refer to these 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".<ref name=CoupoCode.NYT2008>
{{cite news |newspaper=[[The New York Times]]
|url=https://www.nytimes.com/2008/11/27/technology/internet/27coupon.html
|title=In Lean Times, Online Coupons Are Catching On
|author=Claire Cain Miller  |date=November 26, 2008}}</ref> These are typed in before the sale is finalized. Marketers can use different codes for different channels or groups in order to differentiate response rates. Free shipping and cashback are additional inducements. 
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* '''Mobile''': Smartphone based, these are often distributed via [[WAP Push]] over SMS or [[Multimedia Messaging Service|MMS]], and presented at the store or online. These also have advertising benefits even after their expiration date.<ref name=enhancing>Banerjee, Sy, and Yancey Scott (2010), "Enhancing Mobile Coupon Redemption in Fast Food Campaigns", ''Journal of Research in Interactive Marketing'', Vol. 4 Iss: 2, pp.97 - 110</ref><ref>Banerjee, Syagnik (Sy), Poddar Amit, Yancey, Scott and McDowell Danielle (2011), "Measuring Intangible Effects of M-Coupon Campaigns on Non-Redeemers" ''Journal of Research in Interactive Marketing'', forthcoming.</ref>
* '''Apps''': Related to classic coupons are [[loyalty card]]s; these have increasingly been superseded by [[mobile app]]s.<ref name=CoupoLoy>{{cite news |newspaper=[[The New York Times]]
|url=https://www.nytimes.com/2010/09/02/technology/personaltech/02smart.html
|title=How to Get Loyalty Card Prices Without Loyalty Cards
|author=Bob Tedeschi  |date=September 1, 2010}}</ref>

[[National Credit Network|Iranian government national rations]] have a mobile app.<ref>{{cite web | url=https://ir.voanews.com/a/the-ministry-of-labor-announced-expanding-the-coupon-economy-in-iran/7154438.html | title=وزارت کار خبر داد: گسترش اقتصاد کوپنی در ایران | date=27 June 2023 }}</ref>

==Taxation==

=== In the United States ===
Typically, when a coupon is issued by the retailer, the tax burden is decreased by the amount of the coupon because the actual price charged to the customer is reduced.<ref name=":0">{{Cite book |url=https://books.google.com/books?id=Lq_G4xHyOwMC&dq=tax+coupons+manufacturer&pg=PA544 |title=New York State Sales and Use Tax Law and Regulations: As of January 1, 2009 |collaboration=CCH State Tax Law Editors |date=2009 |pages=544 |isbn=978-0-8080-1989-3 }}</ref><ref>{{Cite web |last=Blair |first=Benjamin A. |date=17 April 2015 |title=Seller Beware: Collecting Sales Tax When Coupons Are Involved Is Not So Cut and Dried |url=https://www.faegredrinker.com/en/insights/publications/2015/4/seller-beware-collecting-sales-tax-when-coupons-are-involved-is-not-so-cut-and-dried |access-date=9 October 2025}}</ref> Conversely, whether or not manufacturer's coupons reduce the tax burden a consumer has to pay varies by state. In some jurisdictions, such as Colorado,<ref>{{Cite report |url=https://denver.prelive.opencities.com/files/assets/public/v/3/finance/documents/treasury/tax-guides/taxguidetopic16_couponsandpromotionalitems.pdf |title=City and County of Denver, Colorado TAX GUIDE |date=Jan 2021 |access-date=9 October 2025 |archive-url=https://web.archive.org/web/20250707223129/https://denver.prelive.opencities.com/files/assets/public/v/3/finance/documents/treasury/tax-guides/taxguidetopic16_couponsandpromotionalitems.pdf |archive-date=7 July 2025}}</ref> New York,<ref name=":0" /> manufacturer's coupons are considered taxable because the amount of the coupon is reimbursed by the manufacturer to the retailer. In other states like Connecticut<ref>{{Cite web |date=18 September 2007 |title=Sales Tax Treatment of Coupons, Scan Cards, Cash Equivalents, Promotional Items, and Rebates |url=https://portal.ct.gov/drs/publications/policy-statements/2007/ps-20075-sales-tax-treatment-of-coupons-scan-cards-cash-equivalents-promotional-items-and-rebates |url-status=live |archive-url=https://web.archive.org/web/20250208133537/https://portal.ct.gov/drs/publications/policy-statements/2007/ps-20075-sales-tax-treatment-of-coupons-scan-cards-cash-equivalents-promotional-items-and-rebates |archive-date=8 February 2025 |access-date=9 October 2025}}</ref> and Pennsylvania,<ref>{{Cite web |date=8 March 2023 |title=Pennsylvania High Court Rules on Application of Coupons in Sales Tax Calculations |url=https://www.salestaxinstitute.com/resources/pennsylvania-high-court-rules-on-application-of-coupons-in-sales-tax-calculations |url-status=live |archive-url=https://web.archive.org/web/20230320200305/https://www.salestaxinstitute.com/resources/pennsylvania-high-court-rules-on-application-of-coupons-in-sales-tax-calculations |archive-date=20 March 2023 |access-date=9 October 2025 |website=Sales Tax Institute}}</ref> manufacturers coupons do reduce the tax burden that customers have to pay.

==Trading==
Coupon manufacturers may or may not place restrictions on coupons limiting their transferability to ensure the coupons stay within the targeted market. Since such restrictions are not universal and are difficult and/or costly to enforce, limited coupon trading is tolerated in the industry. Organized coupon exchange clubs are commonly found in regions where coupons are distributed.
Often coupons are available for purchase at some online sites,<ref>{{cite news
|website=CBSlocal.com
|url=https://miami.cbslocal.com/2011/08/08/selling-coupons/amp
|title=Selling Coupons
|author1=Al Sunshine
|author2=Lee Zimmerman
|date=August 8, 2011
}}{{Dead link|date=November 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> but since most coupons are not allowed to be sold, the fee is considered to be for the time and effort put into cutting out the coupons.

Some types of coupons may be sold. ''The New York Times'' not only said "the traffic is legal" regarding selling airline discount coupons, but wrote "check the commercial notices column in ''The New York Times'' or the classified advertising section under 'Miscellaneous') in ''The Wall Street Journal''.<ref>{{cite news
|newspaper=[[The New York Times]]
|url=https://www.nytimes.com/1979/10/07/archives/discount-coupons-still-find-a-market-practical-traveler.html
|title=Discount Coupons Still Find a Market
|author=Paul Grimes  |date=October 7, 1979}}</ref>

During war time or economic hardships, trading or selling ration coupons is an economic crime.<ref name=CoupoRAT.NYT1942>{{cite news
    |newspaper=[[The New York Times]]
    |url=https://www.nytimes.com/1942/12/12/archives/held-in-ration-frauds-3-seized-in-nassau-for-selling-coupons-for.html
|title=Held in Ratio Frauds: 3 Seized in Nassau for Selling Coupons for Gasoline
|date=December 12, 1942}}</ref><ref name=CoupoRAT.NYT1981>{{cite news
|newspaper=[[The New York Times]]
|url=https://www.nytimes.com/1981/03/03/world/polish-meat-rationing-plan-called-highly-complex.html
|title=Polish meat-rationing plan called highly complex
|quote=first time&nbsp;.. since the war&nbsp;.. 3,000 people to administer&nbsp;.. $2 million just for printing coupons
|author=John Darnton  |date=March 3, 1981}}</ref>{{Dubious|date=October 2025}}

==See also==
*[[Canadian Tire money]]
*[[Coupon (bond)]]
*[[Drug coupon]]
*''[[Extreme Couponing]]''
*[[Loyalty program]]
*[[Trading stamp]]
*[[Split payment]]
* [[Ration stamp]]

==References==
{{Reflist}}

==External links==
*{{Commons category-inline|Coupons|lcfirst=yes}}
*{{Wiktionary-inline}}
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{{Paper products}}

[[Category:Sales promotion]]
[[Category:Paper products]]