Swot Analysis Garretson
FOR CONSUMERS:
Garretson says that consumers who are highly dependent on coupons are interested in the economic benefits associated with the promotion technique; they are more price sensitive and value conscious. They are willing to spend extra time to avail the discount. They seek benefits beyond money saving and they also enjoy their shopping experience. The customers who are prone to coupons consider themselves as smart shoppers and are less sceptical about the market. These consumers are attracted to shopping activities and bargains which make them prone to coupons. Also they enjoy the emotional benefit while experiencing the in-store shopping. And the consumer enjoys the psychological pleasure derived from the discount coupons. (Garretson, …show more content…
(Gregory K., 1999) The products purchased with coupons at a discounted price are lower than the market price. However the cost of redeeming the coupon lowers the savings earned by the buyer, the price the customer actually pays is the discounted price plus the transaction cost (the cost of in collecting and redeeming coupons)incurred by the consumer.
FOR SUPERMARKETS:
Cents-off coupon strategy is seen as an effective mechanism for increasing sales or brand loyalty, however on the other side it can become costly and trigger competitive response. It develops awareness in the market which brings in more consumers into the business. Also a positive relationship is seen between coupons and consumer buying behaviour during sales. Cents-off coupon technique encourages consumers to think and evaluate purchase opportunities. This strategy induces the consumers to buy more than they need and influences their willingness to purchase.
The coupon face value positively influences the redemption rate (Reibstein, 1982) and it is also positively related to incremental sales (Bawa, …show more content…
As a result new forms of competition are arising where firms play a vital role in market segmentation. The revolution of coupons strategy has increased the implications of firm rivalry and competition in the market. Cents-off coupon strategy tightens the competition without allowing firms to make profits at their usual price. (Shaffer, 1995) A buyer can have a preferred brand and his choice towards that specific product varies from being minimal to extremely brand loyal, this shows that a buyer is within a preferred boundary for at least one of the firms. Therefore it shows the effects of brand loyalty and inter-firm competition on coupons. The producers also tries to brand switch the rival’s customers by targeting them with attractive coupon discounts. This competition forces the rivals to react defensively by issuing coupons. (Gregory K.,
Garretson says that consumers who are highly dependent on coupons are interested in the economic benefits associated with the promotion technique; they are more price sensitive and value conscious. They are willing to spend extra time to avail the discount. They seek benefits beyond money saving and they also enjoy their shopping experience. The customers who are prone to coupons consider themselves as smart shoppers and are less sceptical about the market. These consumers are attracted to shopping activities and bargains which make them prone to coupons. Also they enjoy the emotional benefit while experiencing the in-store shopping. And the consumer enjoys the psychological pleasure derived from the discount coupons. (Garretson, …show more content…
(Gregory K., 1999) The products purchased with coupons at a discounted price are lower than the market price. However the cost of redeeming the coupon lowers the savings earned by the buyer, the price the customer actually pays is the discounted price plus the transaction cost (the cost of in collecting and redeeming coupons)incurred by the consumer.
FOR SUPERMARKETS:
Cents-off coupon strategy is seen as an effective mechanism for increasing sales or brand loyalty, however on the other side it can become costly and trigger competitive response. It develops awareness in the market which brings in more consumers into the business. Also a positive relationship is seen between coupons and consumer buying behaviour during sales. Cents-off coupon technique encourages consumers to think and evaluate purchase opportunities. This strategy induces the consumers to buy more than they need and influences their willingness to purchase.
The coupon face value positively influences the redemption rate (Reibstein, 1982) and it is also positively related to incremental sales (Bawa, …show more content…
As a result new forms of competition are arising where firms play a vital role in market segmentation. The revolution of coupons strategy has increased the implications of firm rivalry and competition in the market. Cents-off coupon strategy tightens the competition without allowing firms to make profits at their usual price. (Shaffer, 1995) A buyer can have a preferred brand and his choice towards that specific product varies from being minimal to extremely brand loyal, this shows that a buyer is within a preferred boundary for at least one of the firms. Therefore it shows the effects of brand loyalty and inter-firm competition on coupons. The producers also tries to brand switch the rival’s customers by targeting them with attractive coupon discounts. This competition forces the rivals to react defensively by issuing coupons. (Gregory K.,