Coupons are frequently used as a marketing tool. They are tickets that can be exchanged for a discount or rebate when purchasing a product or paying for a service. Generally, manufacturers or retailers distribute coupons through magazines and mailers. The Internet has also become a popular medium of distributing coupons in recent years. Most commonly, though, promotional coupons are given away through newspapers to target a large number of people.
It is estimated that U.S. businesses distribute around 330 billion coupons with an average face value of 71 cents. This figure increases at an average of 12% every year. Coupon use is lowest among young adults, who account for a larger share of the population. 70 percent of 18- to 24-year-olds use coupons, compared with 77 percent of all adults. Men are less likely to trade in coupons than women are. Sixty-nine percent of men use coupons, compared with 85 percent of women.
Restaurants circulate discount coupons in newspapers in order to attract more customers. They are an effective form of advertising for new departmental stores and shops. Sale coupons are distributed in abundance during Christmas and New Year. Some people collect coupons as a hobby.
Trading stamps or coupons were used as an alternative currency in some former Soviet countries. Coupons have a different meaning in the field of finance. Coupons are attached to bonds. A coupon indicates a predetermined amount due for payment to the bondholder by the bond-issuing authority. Coupons of this sort make an excellent gift on special occasions like birthdays and anniversaries.
According to a survey, 49 percent of Americans use coupons or promotion codes to purchase products. Over 70 percent of U. S. consumers believe that coupons help them save a lot of money. However, Web-sourced coupon fraud is on the rise and it is always advisable to confirm the validity of coupons.