DOI: 10.36347/sjebm.2017.v04i04.003

Pages: 248-259

Coupons are a function of marketing merchandise because the consumer perceives savings. Coupons have been used as promotional and marketing campaigns and companies distribute coupons with the key objective of boosting sales through attracting new customers or bringing back existing customers. According to Patton, coupons can be effective marketing tools if used properly however, there is also the possibility of a backlash wherein loyal customers who may have paid full price normally now only purchase in the presence of a coupon. Coupons are well utilized in service companies, but little is known as to their influence. The focus of this research is to examine the effectiveness of coupons on the restaurant consumers‟ purchase decision within the restaurant industry as well as the most efficient mode of transfer. A cross sectional survey was implemented and collected from 247 participants in the Knoxville, Tennessee area (see appendix 1). Frequency distributions, cross tabulation, chi-square and independent sample t-tests were used to assess consumer motivations, consumer behaviors and consumer attitudes towards coupons.