Coupon Science: Fact or Fiction?

Coupons are a mainstay of the frugal household; they are a tangible and common-sensical approach to saving dollars and cents on common household items, food, and even restaurant meals. Frugal shoppers and mindful money savers often boast about their coupon successes on boards and forums online, and share their best stories of almost-free and grocery discounts on recent trips. Tips and tricks include ‘coupon doubling’, watching for sales on specific items in circulars, and even exchanging and bidding on popular brands on eBay. The most savvy coupon redeemers have this pursuit down to a science, and pride themselves on the money saved.

Money saved, or money made at your expense? In an attempt to understand the effect on coupons and buying habits, let’s turn to the company’s perspective of distribution. . .

Coupons first made their debut in America in 1894, where the druggist who bought the formula for Coca-Cola gave away tickets for a free glass of this now-branded beverage. Grocery store coupons were introduced by C.W. Post for 1 cent off of a box of Grape Nuts, in 1895. The Depression era bought coupon clipping to new heights in the 1930s, as saving money was a high priority for all. As supermarkets increased, and retail shopping became a part of consumer culture over the next few decades, the rise of coupons became apparent in the late 1970s. Since then, clipping coupons has become a favored pursuit of housewives, children, and money-conscious consumers. In fact, September was named National Coupon Month in 1999.

Companies distribute coupons for a variety of reasons; they are attempting to introduce a new product; they are trying to increase sales of a particular brand or product; they are looking to capture the niche market of frequent coupon clippers; or, they are highlighting their brand amongst the competition. Now, these are all successful business strategies; they all cater to the consumer, and encourage the purchase of a particular item.