INTRODUCTION
Marketing can be an important part of influencing sales and escalating profits (Olsen, West, Ching-Yick Tse, 1998, p. 146). Profit is the gauge by which a company can measure how well the product was marketed (Lewis & Chambers, 2000, p. 6). Marketing, more than any other business role, can impact the customers’ utilization of the product (Kotler, Bowen & Makens, 1996, p. 1). Customers are fundamental in the hospitality industry and it is what customers think and feel that defines the marketing orientation (Hsu & Powers, 2002, p. 2). It is essential to meet consumers’ needs. If the product is not purchased, the fault usually lies in the marketing of the product (Neff, 2005).
Marketing methods used to reach the customer can vary widely (Hsu & Powers,2002, p. 276). The principle forms of promotion utilized are as follows: coupons, discounts, premiums, games and sweepstakes, merchandising, packaging and sampling. Coupon redemption is the second most popular form of marketing as indicated in the table below (Hsu & Powers, 2002, p. 299).
PURPOSE
The focus of this research is to examine the effectiveness of coupons as a marketing tool within the casual dining segment of the foodservice industry.
LITERATURE REVIEW
Coupons can be a very strong marketing venue. Coupons can stimulate sales of a stagnant product or promote sales of a new product (Kotler, Bowen & Makens, 1996, p. 550). There is a belief among consumers that coupons can save them money (Narisetti, 1997). Coupons are a part of marketing a product because the consumer perceives savings (Lichtenstein & N ...