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Tag Archives: coupons

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Cutting Coupons? Nope, Cutting Paper Coupons out of Promotional Strategies

09 Monday Nov 2020

Posted by grewallevymarketingnews in Chapter 19: Advertising, Public Relations and Sales Promotions

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coupons, Digital Coupons, Sales Promotions

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Coupons have a long and varied history in marketing and retailing. Different sellers have found them either invaluable or unnecessary, …

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Behavioral-Based Bargains: Grocery Stores Get in on Differentiated Pricing

06 Tuesday Nov 2012

Posted by Grewal Levy Marketing in Chapter 06: Consumer Behavior, Chapter 09: Segmentation, Targeting and Positioning, Chapter 14: Pricing Concepts for Establishing Value

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Analytics, consumer behavior, coupons, grocery store, pricing, segmentation, targeting

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If you and a friend visit your local Safeway store—same day, same time, same store—you may be surprised by something …

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Customers Love Their Coupons

10 Thursday May 2012

Posted by Grewal Levy Marketing in Chapter 15: Strategic Pricing Concepts, Chapter 19: Advertising, Public Relations and Sales Promotions

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coupons, everyday low price strategy, high low pricing strategy, Macy's

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A widespread assumption is that customers, interested in convenience, do not want to haggle over the price. That’s why so …

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Redeeming Coupons

11 Monday Jul 2011

Posted by Grewal Levy Marketing in Chapter 14: Pricing Concepts for Establishing Value, Chapter 15: Strategic Pricing Concepts, Chapter 17: Retailing and Multichannel Marketing, Chapter 19: Advertising, Public Relations and Sales Promotions

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coupons

Couponing enthusiasts, defined as consumers who buy over 188 items a year with coupons, are causing headaches for many retailers.  …

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Coupons Gain Popularity

06 Saturday Dec 2008

Posted by Grewal Levy Marketing in Chapter 03: Social and Mobile Marketing, Chapter 09: Segmentation, Targeting and Positioning, Chapter 18: Integrated Marketing Communications, Chapter 19: Advertising, Public Relations and Sales Promotions

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coupons, mobile commerce, mobile coupons

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Coupon redemption has been on the decline every year—except for this one. As the mortgage crisis and high fuel prices …

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Coupons—A Deadly Sin in Retailing

01 Friday Jun 2007

Posted by Grewal Levy Marketing in Chapter 14: Pricing Concepts for Establishing Value, Chapter 15: Strategic Pricing Concepts, Chapter 17: Retailing and Multichannel Marketing, Chapter 18: Integrated Marketing Communications, Chapter 19: Advertising, Public Relations and Sales Promotions

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coupons, events, Macy's, promotions

Coupons seemingly are ubiquitous; since their start in 1894, they have become a fixture of American culture. In 2005, 46 percent ofU.S.retailers gave out coupons, and 80 percent of Americans used them.  Yet Macy’s stores are dramatically reducing coupon offerings to increase profits.

After Macy’s (formerly Federated Department Stores) purchased May Department stores, which included Filene’s, Marshall Fields, and a host of other stores, the number of Macy’s stores doubled. In response, the giant retailer has concentrated on renovating its in-store appeal by decreasing clutter and making dressing rooms more sophisticated with deluxe furniture and televisions. Along with these in-store changes, it offers more expensive merchandise, more exclusive products from designers, and its own private-label products.

By the same token, to increase its earnings, Macy’s decreased the number of days on which customers can redeem coupons by one-sixth, which might lead to more profits and gross margins but also could mean fewer customers. Many customers prefer to shop at other department stores, such as JCPenney, Kohl’s, or Dillard’s, that offer them coupons.

In removing the emphasis from coupon discounts and focusing on merchandise and the retailing environment, Macy’s is taking a bit of a risk. The retailer may suffer lost customers, especially price-conscious ones, which in the short run will hurt its profits. Macy’s hopes to make shopping its stores worthwhile for customers through everyday value rather than discounts. However, the retailer plans to offer coupons specifically to its credit card holders, its most profitable customers.

Discussion Questions:

1. How is Macy’s trying to shift its pricing strategy?

2. Do you think it will work?

Cotton Timberlake, “Macy’s Loses Sales as it Weans Shoppers from Coupons,” Bloomberg.com, May 16, 2007.

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Archived Articles by Chapter

  • Chapter 01: Overview of Marketing (72)
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  • Chapter 04: Conscious Marketing, Corporate Social Responsibility, and Ethics (142)
  • Chapter 05: Analyzing the Marketing Environment (211)
  • Chapter 06: Consumer Behavior (171)
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  • Chapter 12: Developing New Products (177)
  • Chapter 13: Services: The Intangible Product (139)
  • Chapter 14: Pricing Concepts for Establishing Value (92)
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