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Within a short three month period, there is some indication that the downward trend may be slowed or stopped. Recently, Narisetti (1997, April 17) has shed some light of the reason for possible trends away from dropping of coupons. P&G tried a short trial to drop coupons and found it had stirred up a customer revolt in the New York state area. Because of P&G purchasing and market place power other stores followed their lead. Not only did the customers strongly object to the loss of one of their inalienable rights to have coupons, but, the company is facing antitrust problems.

There is still a problem of 98% of the printed coupons not being used. Food companies and stores are looking for a solution. One approach being tried is an increased targetting of coupons towards in-store. This is felt to increase their effectiveness. Whether this will be successful or not depends on their purpose as loss leaders, sales incentives, or marketing tools in themselves.

What are the advantages and disadvantages of coupons? A review of selected coupons by the NFM433 class, Spring, 1997, listed the following items for advantages and disadvantages of coupons.

ADVANTAGES

DISADVANTAGES

The coupon is easy to read and contains color; appeals to the eye. Copartnering of coupons Seasonal ad is appropriate. Coupon includes rebates on other items Ad has 800 number for further assistance The manufacturer's address is on the coupon. Long, trusted, reliable brand name and company customer service. It explicitly states the constraints of the coupon in bold letters at the top of the coupon. The coupon included the company brand name and familiar theme. Consumer does not have to turn in rebate. A successful promotional tool as a recognizable icon was used which people associate with quality. Builds consumer loyalty to the brand product An empty glass creating a desire in the viewer and allowing them to imagine what a full class of cool milk would do to their already stimulated senses. Avid coupon users would also see the practicality of this ad/coupon. Recipe attached to the coupon hopefully will entice the consumer. Offer the consumer the option to reduce their fat intake and use margarine or butter, whichever they prefer. Use packaging that can be recycled (plastic & metal). It is a reminder of the product via picture of product. It evokes goodwill and positive feelings from the consumer. Touches emotions-brings about "warm fuzzies". People tend to buy more during this holiday. It takes advantage of it with "gift" It is a manufacturer's coupon so it can be used anywhere. This large one page ad would be hard to miss so it is almost guaranteed somebody will read it. Motivate purchasing of the products Promote further purchase The value is good. The coupon itself encourages the purchase of more than one can of this product line because it can only be redeemed if the customer buys two of the items. The coupon meets diferent consumer preferences by giving savings on five varieties. Introduces a new product to the consumer at a reduced price You do not have to buy multiple units to collect the savings. Serves as a reminder to pick up the product while shopping Both versions of product are visually displayed in the coupon and so choice. The size of the coupon is appropriate (fits in wallet or coupon booklet easily). The information is easy to read. The expiration date is clear, as are the requirements of the coupon. The advertisement is generic and nondiscriminating, and does not appear to likely be offensive to any particular culture or group of people. Because the ad is printed on paper heavier than the pages of the magazine, the coupon will not be overlooked. In fact, when flipping through the magazine, the paper actually creates a natural stopping point. Having a fold-out that is realistic is an eye-getting gimmick; the fold-out sandwich is life-sized. This is definitely a memorable ad. The coupon is perforated for easier remove. The ad associated with the coupon shows differences between products and appeals to different preferences. The coupon/ad projects the product as a fun food. The fruit looks appetising and reminds people that they can be creative with the product. The coupon is offered in a Sunday morning newspaper to target people who are eating breakfast.

All coupons have an expiration date and sometimes we as consumers don't need the product at the time the coupon is available, but we know that we will need that product in the future and by then the coupon has expired. Another problem with coupons is their small size. The name of the products are not used in large lettering, they are only in the photographs of the box on the coupons themselves or the recipe. The small size of the icon and the symbol may not be seen by customers. The coupon is small and on the back of the advertisement and gets lost within the colorful ad. Most have restrictions such as what size, or how many must be purchased to receive the discount Ad is not visually clear The bar codes usually take up half the coupon, this seems to be a waste of money. The bar codes which appear on this coupon most likely will give the manufacturer either some information on the consumer which in my opinion is an invasion of the consumers privacy. No phone number for the manufacturer. Some people could be frightened or turned off by food with a face. If the ad is read just after breakfast it may not get paid its intended attention. Slogan is kind of confusing Savings is apparent, but if you were not a regular customer you would not know the final price and whether or not it was a good perceived value Having to buy two to save only $.55 could be a drawback Savings are relatively small. There is an off chance of some people associating product only with the holiday. The "while supplies last" is probably a necessary statement, however, it might deter people from placing an order. "5 Minutes Box To Oven" may sound too good to be true. Though the ad emphasizes three products, only one has a coupon. Having coupons for all of the products might be more appealing. There is a lot you have to go through to get to the coupon. Money, money, money. Color is expensive. Having an insert in a magazine is expensive. Having a die-cut, full color fold out is outrageous. Co-partnering is most likely essential. There is a limit of one coupon per customer. If there is sales tax where the item is sold, the customer still has to pay it. The coupon states that any flavor would be honored. However, some customers who do not like the particular flavor advertised in the advertisement and pictured on the coupon may wonder what other flavors are available. Coupon may be too subtlete and sophisticated for the target audience. It is not very informative as far as nutritional information or health benefits. Usually the coupons are distributed in newspapers, therefore only reaching a select group of consumers Many consumers find it a hassle to use coupons and may not even look at the promotional page High cost This coupon may be targeted to narrowly. Double message in that product is co-partnered. It is difficult to tell what is holding in his hands as proportionality is not appropriate. What is Dutch Processed - European Style? Lack of definition for those consumers who may not know. No mention of alternate cooking methods (microwave for example.) Some consumers may consider this coupon uninteresting and thus discard it. There is a lack of information on the size of container that the coupon applies to, again, is there value?

Updated: Friday, July 24, 2009.