Holiday Coupons: Shaping Today’s Market
July 28, 2023
A staple of the holiday season is having tons of sales that people love to exploit. As consumers, we tend to pick brands that make us feel valued and in turn we spend money on them. People love a good bargain, so let’s take time to look at how holiday coupons are reshaping today’s market.
At first glance, an idea of selling items for lesser profit may seem a little absurd. Like so, let’s look at it from a different angle. Giving out coupons will increase customer value and long-term company reputation. A great example of this is Coca-Cola’s first distribution of their coupons for a free Coke. The results were astronomic, as just a few years later, the drink was being served in every state.
Why do people love holiday coupons?
Coupons tend to raise a customer’s oxytocin levels, commonly known as happy hormones. This enables consumers to be more inclined in spending those coupons before they expire, and it gives way to more people talking about the store.
Customers are also more inclined to spend at a brand-new store if there is an existing incentive to spend. As consumers, we find it inherently difficult to spend somewhere entirely new or on something unfamiliar with the full untouched price. Coupons eliminate this problem for consumers as it essentially gives out a “free trial,” except not being free, it’s a discount! This creates a bond between client and business that promotes long term loyalty towards the store.
Incorporating this in a holiday scene isn’t that hard to do as well since businesses almost everywhere already do this through “Santa Wish-Lists” that customers can add certain products to which then can randomly be selected for discounts, or even given out for free.
What about the downsides?
We all have to remember that consumers and customers are not robots, and can determine when and where to get good deals. This means that the sale and discount periods are mostly anticipated by the public, and would not spend otherwise. It is important to not put out too many discount notices as this would lead to lower profits in the long run.