Brooklyn College, CUNY

• BUS 7203

• 1. Evaluate the effectiveness of coupons as a sales promotion tool. How would you respond to critics who argue that they are inefficient since less than 2% of coupons are redeemed? Consider in store, online and other types of coupons. Provide 2 - 3 examples to support your response. Coupons are not effective sales promotion tools and should not be considered as a valuable source of marketing for increase in sales. Prices vary among different vendors and shoppers are knowledgeable in researching for the lowest price available, especially consumers who are priceconscious. An item priced in Bed Bath and Beyond, which includes the sales tax, delivery charges and a 20% off coupon might equal to an identical item priced in Amazon without any discounts or promotions. Critique of the coupons’ ineffectiveness further emphasizes the argument that pricing strategy is a better indicator of sales success. The statistic stating that less than 2% of coupons are redeemed does not denote if this includes all stores who use coupons, since not all stores/retailers use coupons the same way. The critics’ argument is neither conclus