8 09 2010

Does ‘digital couponing’ cause consumers to forsake brand name products over cheaper products or services? If yes, explain why you agree with this article. If no, why do you disagree with his article? Do you think the reason is brand loyalty? Do you thing that well-known brands offer more discounts?
The question was asked “Does ‘digital couponing’ cause consumers to forsake brand name products over cheaper products or services?”

My answer to this question was, Digital couponing does not cause consumers to forsake brand name products for cheaper products it actually works in the opposite manner. Through ‘mobile couponing’ consumers are able to get brand name products for the same amount or less than the cheaper products. Getting to the consumer on the go while he is moving is the key to conversion. Also you have to remember consumer conditioning plays a large part in how a consumer buys and in what that consumer will buy. As this recession lingers, consumers are not remaining as loyal to brands for necessities. I think some well known brands can offer deeper discounts, but it is sometimes the third party distributors who have to bare the brunt of a sliding profit margin. Digital couponing can ease some of the cost of continuing consumer retention programs. When going digital you lose the cost of mailing materials and the cost of printing these coupons. According to Juniper Research Mobile ticketing transactions are forecast to exceed 100 billion as soon as 2012. The worldwide market for remote mobile payment of digital goods is expected to reach $1.65 billion by this years end. One such program I am in love with is Cinema Couponing. This is what they call an incentivized offer in other words you are allowed to modify the pricing so that you can create a coupon program as an added incentive to purchasing this product from your mobile device or online. If third party distributers learn about the merchants and their offers they could work together to help move products/and service therefore increasing revenue and aid towards probable job creation.




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