The Discount Factor

A coupon refers to a document which when purchase of a product can be exchanged for a rebate or a financial discount. The manufacturers of consumer goods or the retailers may issue them. This is done as a sales promotion measure. The distribution is done vide mail, magazines and newspaper, the Internet and cell phones. The origin of coupons goes back is traced back to the 1890's when Coca-Cola Company distributed complimentary coupons for a free drink of Coca-Cola in the US. In 1909, Mr.C.W.Post thought this to be an interesting concept to promote breakfast cereal and other products. In today's world, they are widely distributed for the consumer-packaged goods. The coupons provide the companies an idea about the price sensitivity issue of the target customer audience. The Grocery coupons ensure reasonable savings while purchasing, as they are essential items. The welfare coupons are distributed to people living below the poverty line or are close to it in an effort to increase it.

A voucher is considered to be a bond worth a certain financial amount. This can be spent for certain specific conditions or on specific items only. These are widely available for food, travel and housing purposes. They are considered as receipts in lieu of a certain services provided. Let us understand the life cycle of a travel coupons and vouchers. Customers receive them from the travel agents after their services are bought. At their vacation site the service provider is forwarded these and service is requested for. On receipt of the coupons and vouchers, the service provider offers the services and periodically sends the coupons and vouchers to the travel agents for encashment of the services offered. The restaurant coupons and vouchers are also in high demand. As travelling is a part of the journey of life, these are in very high demand.

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