Give Me a Coupon That I Can Use Online! While consumers certainly enjoy coupons, what do retailers stand to gain? Turns out, plenty. The study suggests that coupons have a signifi cant impact on retailers’ bottom lines, in addition to the obvious consumer benefi t, as couponers are likely to spend more, have higher satisfaction, and return to the retailer where the coupon was used, according to Online Shopper Intelligence, a study from Boston research company Compete. More than half of the consumers who used a coupon code during their last online purchase said that if they had not received the discount, they would not have bought the item(s)—57 percent said no, 43 percent yes—and more online shoppers are using coupons now than ever. One-third of online shoppers reported that they generally use coupon sites while shopping online, and 35 million consumers visited coupon sites monthly. Coupons have a high return on investment, as the small discount consumers receive encourages them to spend money. When asked how much they spent on their most recent online purchase, consumers who use a coupon spent almost twice as much as consumers who did not use a coupon ($216 with a coupon versus $122 without). Offering coupons can be an effective way for retailers to build goodwill with consumers and increase customer satisfaction. When asked about their overall shopping experience, consumers who used a coupon expressed higher satisfaction than did those who did not. Ninety-two percent of coupon shoppers were extremely or very satisfi ed, versus 88 percent of noncouponers. Consumers who used a coupon also said they are more likely to buy from the retailer again when compared to those who did not use a coupon. Ninety-one percent of consumers with coupons reported being extremely or very likely to shop again at the retailer where the coupon was redeemed versus 86 percent of consumers without coupons.11 1. How might a firm like Home Depot use this information? Would Amazon.com use the same couponing strategy as Home Depot? 2. Do you think that Home Depot might need more research before it develops a couponing strategy? If so, what does it need to know? 3. Do you think it is necessary for online retailers to conduct marketing research? Why?
Give Me a Coupon That I Can Use Online!
While consumers certainly enjoy coupons, what do retailers stand to gain? Turns out, plenty. The study suggests that coupons have a signifi cant impact on retailers’ bottom lines, in addition to the obvious consumer benefi t, as couponers are likely to spend more, have higher satisfaction, and return to the retailer where the coupon was used, according to Online Shopper Intelligence, a study from Boston research company Compete. More than half of the consumers who used a coupon code during their last online purchase said that if they had not received the discount, they would not have bought the item(s)—57 percent said no, 43 percent yes—and more online shoppers are using coupons now than ever. One-third of online shoppers reported that they generally use coupon sites while shopping online, and 35 million consumers visited coupon sites monthly. Coupons have a high return on investment, as the small discount consumers receive encourages them to spend money. When asked how much they spent on their most recent online purchase, consumers who use a coupon spent almost twice as much as consumers who did not use a coupon ($216 with a coupon versus $122 without). Offering coupons can be an effective way for retailers to build goodwill with consumers and increase customer satisfaction. When asked about their overall shopping experience, consumers who used a coupon expressed higher satisfaction than did those who did not. Ninety-two percent of coupon shoppers were extremely or very satisfi ed, versus 88 percent of noncouponers. Consumers who used a coupon also said they are more likely to buy from the retailer again when compared to those who did not use a coupon. Ninety-one percent of consumers with coupons reported being extremely or very likely to shop again at the retailer where the coupon was redeemed versus 86 percent of consumers without coupons.11
1. How might a firm like Home Depot use this information? Would Amazon.com use the same couponing strategy as Home Depot?
2. Do you think that Home Depot might need more research before it develops a couponing strategy? If so, what does it need to know?
3. Do you think it is necessary for online retailers to conduct
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