January 29, 2022


Accounting + Finance Blog

Coupons Meaning and key Explanations

Coupons: Meaning and key Explanations

In today’s internet world, the use of the coupon to entice sales is an important marketing tactic. Codes, voucher, etc has been redeemed by customers. This enables them to buy products at a reduced price. But, what really is a coupon.

Definition of Coupon

It is a code, document or voucher given to a customer to redeem a product or service at a reduced price.

Key Explanations

It is a code. A coupon is a code. It’s usually in a combination of letters and numbers. Most electronic coupons are in the Alphanumeric formats.

It may come in the form of document or voucher. Traditional coupons are found in documents such as newspapers and magazines. Firms use it to attract customers to buy their product at a discount price. It may also be used to understand customers behaviours. Also, vouchers are given in form of tickets by the firm to buy their goods at a reduced price.

It may be sold. Firms may decide to sell coupons to potential customers. Amazon is a good example of an eCommerce company that sells coupons. This can be used multiple times within a period by the customer who purchases it.

It is redeemed at cash out. It can only be redeemed at cash out. That’s when the customer is willing to pay for the item. It cannot be given when goods are bought on credit. This is so as the aim is majorly to increase sales.

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For online buyers, there is usually a place where you can type the coupon code to redeem the discount and pay the reduced price.

It is a promotional tool. Generally, it is a promotional tool used by marketers to create awareness of an item sold by a company. When potential customers used these vouchers to buy the product, it may encourage them to buy another time. Customers who have already used Thiers may tell friends and family members to get the code to buy the item.


Although coupon here is a marketing tool, in the field of finance, a coupon is a term that is used in fixed income investment.