Impact of Coupon System on Consumer Behavior in E-commerce Sales

This dissertation explores the impact of coupon system or promotional activities on consumer behavior in e-commerce sales. It focuses on the use of coupons as a promotional strategy and its effect on attracting customers and increasing sales. The study is based on Souq.com, an online business that utilizes various promotional tools. The research aims to understand how customers make online shopping decisions when offered coupons and deals, and the effectiveness of coupon marketing strategies in generating business revenue.

Impact of coupon system or
promotional activities on consumer
behaviour in ecommerce sales-

Abstract
In the modern era, every company wants to use best and advance technology in their
company in order to generate the best sales and profit. In the same way, the current dissertation
also shed the light of using promotional tools within the business area so that it will help to
attract wide range of customer. Moreover, the dissertation provide the importance of using the
discounting strategy as a promotional strategy will assist the business to grab attention of many
customers. Further, using effective range of research methodologies, researcher also attain the
defined aim and objectives and including this, the existing dissertation further help to determine
whether use of coupon as a promotional strategy will help to enhance the current sales. It is
based upon the study of Souq.com which is a online business who provide range of products to
the users by applying different promotional tools. Overall, the current existing dissertation also
describe the impact of using coupon as a promotional strategy into Souq.com

Acknowledgement
On the very offset of this report, I would like to extend my sincere and heartful obligation
towards all the person who support me to complete the dissertation in better manner. First of all,
I would like to thank my tutor and professor provide their guidance and support for the
completion of the project.
I also extend my gratitude to my university who provide me an opportunity to work on
this and learn new.
I also acknowledge with a deep sense of reverence, my gratitude towards my parents and
members of my family who always support me morally as well as economically.
At last but not the least gratitude goes to all my friends who directly and indirectly helped
me to complete the dissertation.
Thanking you.

Table of Contents
Abstract............................................................................................................................................2
Acknowledgment.............................................................................................................................3
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Background of the study...................................................................................................1
1.2 Research aim and objectives............................................................................................1
1.3 Research questions...........................................................................................................2
1.4 Rationale of the study.......................................................................................................2
1.5 Significance of the study..................................................................................................2
1.6 Structure of the dissertation:.............................................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
2.0 Introduction......................................................................................................................4
2.1 Role of sales, discounts and coupon promotion in increasing sales.................................4
2.2 Importance of studying consumer behaviour...................................................................6
2.3 Coupon strategy used by Souq.com.................................................................................8
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................10
CHAPTER 4: DATA ANALYSIS & FINDINGS........................................................................15
H1. There is an impact of coupon and discounts on buyer decisions in the same of souq.com
in the UAE............................................................................................................................17
H2. Sales promotions have positive effect on the buying activities of the buyers on souq.com
..............................................................................................................................................25
H3. Sales and discounts help souq.com in staying on top of its business competition in the
UAE .....................................................................................................................................28
CHAPTER 5: CONCLUSION AND RECOMMENDATION ....................................................30
Conclusion............................................................................................................................30
Recommendations................................................................................................................31
REFERENCES..............................................................................................................................32

CHAPTER 1: INTRODUCTION
Topic: Impact of coupon system or promotional activities on consumer behaviour in e-
commerce sales
1.1 Background of the study
In this modern era, every company need to implement best technological advancement
tools that helps to attract customer and identify their overall buying behavior, as a result, it leads
a firm to stay competitive in the market. That is why, very brand provides best and attractive
products to generate sales. Hence, it is provide that growth of business is possible only when
sales is high and customers are satisfied. Further, when the customers are happy they
automatically promote the products using word of mouth as a promotional activity. Moreover,
these things will also connect the customers with brands. In addition to this, company uses
different promotional tools because it is consider one of the highly attractive key aspect that
draw attention of many customers and in the same way, report also highlights different
promotional tool such as Coupon system for Souq.com which is an online firm and dissertation
also describe that deals, offers and discounts made by an ecommerce brands also play an integral
role in attracting buyers towards it. Along with this, to conduct the research in better manner,
researcher also entails reasons due to which investigation is conducted along with its
significance.
1.2 Research aim and objectives
Aim:
The aim of this report is to understand the promotional activities especially coupon and
discount offers which affect the consumer choice for Souq.com. Through these discount using
coupons, affect the way people make their decision in order to buy online products. In the same
way, current dissertation also helps to examine the consumer behavior by sing coupon system
and promotion that is offered in e-commerce platform.
Objectives:
 To analyses how customers make online shopping decisions when offered coupons and
deals on Souq.com
 To study the effectiveness of coupon marketing strategies to generate business revenue.
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1.3 Research questions
Research questions:
Q1. Does coupon marketing target specific consumer?
Q2. How do consumers respond to coupons in E-shopping?
Q3. How does coupon marketing help Souq.com generate revenue?
1.4 Rationale of the study
The rationale behind conducting the research is to determine that coupon system creates
positive impact upon the sales of e-commerce platform or not. This is turns, researcher also
collect information which helps to enhance current knowledge and as a result, it may be applied
in future as well. Along with this, due to having high level of competition, e-commerce business
are generally prefer by the customers because they provide products using different sales strategy
and as a result, they also draw attention of many customers as well. In this regards, by using
thematic analysis, current study will shed light using promotional activity especially coupon
system on consumer behavior on online platform.
1.5 Significance of the study
By doing this assessment, it has further found that other scholars and firm which are
operating in e-commerce will also get benefitted from the outcomes generated by the research.
Moreover, by reviewing the current study, others scholars who also wish to conduct the study on
similar topic may also use this and as a result, they identify the literature gap and also develop
hypothesis for their future study as well. In addition to this, through this research, Souq.com will
also determine that using best promotional tools within a firm will help the company to generate
the sales and company performance as well. Even business unit who are also generate in this
same sector may also use this method in order to enhance their current financial performance.
1.6 Structure of the dissertation:
Chapter 1: Introduction
The first chapter of dissertation contain the brief overview of the research which is being
investigated. Moreover, it also highlights the aim and objectives, research questions with
rationale and significance o the research. This chapter also provides a brief overview on the topic
and need to conduct the research in proper manner.
Chapter 2: Literature review
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In this chapter, researcher uses secondary research and for that they uses books, articles
and journals that support the literature review and helps to attain the defined aim and objectives
as well. In this chapter, critical evaluation is done from sales, discount and coupon promotions
that helps to increase the sales. Further, this section also helps to understand the importance of
studying consumer behavior and then shows the coupon strategy which I used by Souq.com.
Chapter 3: Research methodology
This chapter describe the different types of research methodology that determine the way
through which the researcher meet the aim and objectives in better manner. Thus, this chapter
describe research type, approach, philosophies, data collection, sampling and analysis method
and also provide proper justification in order to conduct the research in precise manner.
Chapter 4: Data analysis & findings
One of the most important section of the dissertation which highlights results derived
through a research. Moreover, in this, themes and graphs are used on the basis of responses
gathered using primary research. Moreover, these primary research is also supported through
literature review section as well.
Chapter 5: Conclusion & recommendations
Last chapter of dissertation that conclude whole investigation and describe summary of
each and every section. Further, this section also conclude that the impact of coupon system or
promotional activities on consumer behavior in e-commerce sales. In this section,
recommendation is also provided that helps Souq.com to attract wide range of customer by using
best marketing and promotional tools.
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CHAPTER 2: LITERATURE REVIEW
2.0 Introduction
The chapter of literature review will discuss the research that is conducted earlier in order
to show how the marketing strategies of promotion and coupons marketing assist the companies
to create customer interest. Further, this section is a scholarly paper which includes the current
knowledge using substantive findings as well as methodological contributions for a particular
topic. Therefore, researcher uses journal articles, books and souq.com website or may use
newspaper articles in order to studied or analyses the influence o coupons and discounts which
offers on consumer behavior. This section describes the roles of sales, discounts and different
coupon promotion in order to raise sales, further researcher also describe the importance of
studying consumer behavior and coupon strategy which is used by Souq.com
2.1 Role of sales, discounts and coupon promotion in increasing sales
As per the view of Hu and Winer (2017) competition in the business is consider one of
the major driving force that helps to launch new and innovative marketing strategies in order to
draw attention of many customers as well as repeat the sales. In the same way, in order to
promote the sales, e-commerce stores also uses both media and non- media marketing
communication in order to increase customer demand as well improve product availability too.
For instance, these sales promotion includes contest, coupons and prizes and product samples
etc. On the side, Shin (2016) stated that both sales and promotions are technically short- term
marketing strategies, but when company uses these in regular basis then it allow the brand to
attain long term revenue goals too. Many research also stated that promotion is one of the best
and essential factor that helps a company to introduce new product in market. Hence, promotion
may includes different discount offers and other benefits which helps to increases the sales.
Additionally, Kim and Kim (2018) stated that in order to increases the sales, online stores
mainly uses coupons system because it helps the marketers to grow the market share and also
increases sales volume and also drown out the competitor advertising. Not only this, coupons
also encourage customer to make a repeat purchase, in turns they also get a discount on their next
purchase as well. Many online stores also provides discount offers such as 'buy three get one
free' and this discount strategy only helps to attract wide range of customers. On contrary,
Martins (2018) argues that most of the people think that coupon are just ordinary discounts,
nothing more than that, but this sales promotion strategy accelerate purchasing and also increases
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consumption rates as well. For instance when the coupon reduces the cost of ownership and
consumer also become willing to buy many products at faster rate then it helps to recognize the
value and more willing to use company's products. In the same way, using discount and sales as
a promotional tool for Souq.com is beneficial as it attract wide range of people towards them.
According to Rasool and Mahmood (2018) discount and coupons add attraction to the
products, it is so because when attractive discount offers through online use o coupons are made,
the consumer feel more interested to buy the products. In the same time, when cognitive thinking
of consumer is also influenced during the sales promotion then customers are more likely or
personally attracted towards the products and as a result, they become a loyal customers for a
brand. Every top brand uses discount and coupon strategy in order to attract wide range of
customers towards it and this turns to sustain the brand image of the firm as well. Thus, it clearly
reflect that sales promotions are done to increase the sales of a products by creating demand and
it also help to move the product more faster and also stabilize the fluctuating sales pattern as
well. Argo (2019) evaluated that the top brand uses different promotional tool to attract attention
of prospective buyers and also inform them about the availability and uses of a particular product
as well. Not only this, promotion also helps in letting people know about the utility of new
products and also tell people how the concerned products will helpful to satisfy the specific
demands.
As due to high competition in market, brand or top firm uses the best promotional tools in
order to generate the sales and also attract customers by offering the product in order to satisfy
their needs. As per the view of Kandra and Singh (2019) using coupon as a promotional strategy
will help the business to make rotation of their products such that when a company offer coupon
to their customers then they will definitely purchase another products in order to use a coupon
and as a result, it helps to make rotation and also keep attracting customers towards them. On
contrary, Akram and et.al., (2018) advertising is the long term plan while sales promotion is
short term plan and author also state that advertising also looks more at creating a brand image
while on the other side, sales promotion is all about quickly earning money by selling something
to others. Sales promotion not only helps to sell the products but it also creates a sense of
urgency as well.
Thus, sales, coupon and discount plays an important role in promoting a product and it is
all about providing incentive to customers and usually economic incentives which is offered to
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customers to become loyal for a brand. Hence, it is generally used to boost up sales and
encourage customer to trial a product or may switch to other brands as well. Therefore, it will
also help to leads a brand image at international level as well. For instance, Souq.com or other
online stores uses coupons strategy in which they offer some amount to customers which will be
redeem in their next shopping so that this coupon creates curiosity among customers and force
them to purchase another product. As a result, it generate the sales as well as raise brand image
too.
2.2 Importance of studying consumer behaviour
As per the view of Chong and et.al., (2016) consumer behavior is of vital importance and
even brands also uses different strategies as well as methods in order to study he customer
behavior and different factors which creates direct impact upon the consumer buying decision
making. Hence, by studying the consumer behavior will help to develop the marketing strategies
in order to maximize the sales. Thus, it is clear that knowledge of consumer behavior is as
equally useful for middlemen and salesman to perform different task in effective manner so that
they meet the customer demand and wants in successful manner. Overall, customer behavior also
improve the performance of entire distribution system and sustain the brand image at
international level as well.
In addition to this, author also state that by study the consumer behavior helps the
marketers to recognize as well as forecast the purchase behavior of users at the time o
purchasing. Therefore, study on the consumer behavior will not only help to determine what
consumer purchase but also assist to understand why they purchase specific product only. Hu
and Winer (2017) also state that every buyers spends around two hours daily to purchase the
product using online mode because online stores offers different coupons and discount strategy
in order to attract range of customers towards them. As per the statistics provided in 2019, it is
analyzed that around 59% of the adult uses Internet in which they use coupons to make
purchasing, even every buyers wants to save money and use discount offers and that is why,
buyers look for a coupons at the time of purchasing online products (Importance of studying
consumer behaviour, 2018).
Additionally, another importance of study the consumer behavior by online store is to
operationalize the marketing concept which is the philosophy of a business which state that the
satisfaction of the consumer is must when company offer wide best quality of products.
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Moreover, Martins (2018) stated that the study of consumer behavior also modify the marketers
to determine the psychology of consumers and it is entirely based upon the knowledge, attitude,
intention and motive as well. Hence, attitude explain the behavior of the customers, while
intention means to desire to do something. Therefore, by studying on this and analyzing the
consumer behavior will help to determine the behavior of users and in turns, it also leads to
understand the consumer choices as well.
Family decision making model
Kim and Kim (2018) stated that using family decision making model, online stores determine the
purchasing of customers because the role of every member of the family plays in the purchase
decision which is unique. Hence, there are six types of family structure such that User, who
actually plan to use the product which is being purchased. User may be single person in the
family. Another is Influencer, who actually keep updating the other members of the family
related to new services offered by companies, in turns influencer actually convince other people
to go in for the same and hence, plays an important role. Next is Preparer, who gives a product
its final stage in which they actually going to use by the users in a family. Another is
Gatekeeper, who actually influence people in order to purchase the product and as a result, they
helps the people to make the decision better as per their needs. Next is buyer, who actually
buys the product and makes the final purchase of the product. Last is Decider, who has money
power to buy the product as well as service chosen for the purchase. As a result, this model
shows that every members has many roles and as a result, their influence in decision making
pertaining to buying the products and services from online stores.
Hence, it is realized that there are many factor which affect the consumer buying
behavior in just opposite way and there is a need to realize the factors and its impact as well.
Further, the consumer behavior is also studied through the focus groups as well as tracking the
sales history too. It is also analyzed by identifying the customers buying behavior such that it is
more relevant to marketing program, because it is consist of product, price and promotion and
distribution decision which is further prepared in more objectively. Not only this, it also help to
predict the market trend as well . For instance, Souq.com analyze the consumer behavior which
may also help in projecting the future market trend and the marketers also find good time in
order to prepare for exploiting the emerging opportunities as well as facing different challenges
too.
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2.3 Coupon strategy used by Souq.com
According to Walwema, (2016) Souq.com offer consumers a safe and easy to use as well
as fun place to find exceptional rang of leading products and brand. In order to increase their
sales and profit margin, firm used coupon strategy which is quite beneficial for overall business.
Coupon codes offered by company is one of the best and amazing way that help business to
attract new consumers while bringing back the previous buyers. This approach work effectively
as it help to incentivize new people and give them a relevant reason to purchase or shop with
Souq.com, while providing previous clients a reason to buy again and again. Coupon strategy is
win and win strategy that organization can used to make their consumers happy. In context of
online shopping and e-commerce coupon code is the computer generated code, consist of
numbers and letters that potential consumers can enter into promotional box on site purchasing
cart to get the best discounts on recent purchases of products through online or offline. Firm
offer coupon or promotional codes which is alphanumeric strings to encourage purchases on
their own websites and that are usually associated with overarching promotional marketing
strategy. As per view of Ngwe, Ferreira and Teixeira, (2019) most coupon codes gives discounts
for online purchase such as percentage off entire purchase, fixed discounts and free shipping as
advertised by business.
HEATH, (2019) stated that coupons are become sophisticated marketing tools, that drives
sales rather than before and help in building brand image as well as consumers loyalty. Coupon
code and campaigns is the source of tracking data for CRM uses to continuously improve and
build marketing efforts in common. In addition to this, coupon strategy mostly used to boost up
the brand position and image within marketplace, it helps to set brand image in mind of new as
well as potential consumers. When company offer at least 20 % off on any products to people
because consumers prefer to purchase things on sales and discounts as a strategy to attract more
clients to Souq.com. Coupon strategy help to minimize the cost of advertising and promotional
plan for organization, the name of company and other pertinent information is featured
prominently on coupons they offered to people. Doing so will had prospects perceive business as
one that provide deals, leading consumers to visit company websites for other discounts, in
simple term it helps to retain traffic for longer which is quite beneficial for overall business
within marketplace.
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On the other hand, in the view point of Ives, Palese and Rodriguez, (2016) organization
used coupon strategy at clients acquisition stage to obtain people data and also used to build
database of potential clients who are interested in deals, discounts and coupons offered by firm.
Coupon strategy is referred to the marketing strategy which is very effective and useful to attract
people, who can certainly boost sales of company. It helps to drive consumers towards online
websites of business, once consumers visits websites company have the advantage to turn them
into repeat purchasers. As Souq.com is one of the biggest retailer that is operating in the online
sales of the third party brand and there is a giant e -commerce platform in UAE. That is why,
there are is a large number of coupons which are generated by the sellers who registered with
Souq.com. Therefore, these coupons are also further availed from the different deals and coupon
website in every year In order to generate the sales and improve the financial performance of the
firm as well.
Rasool and Mahmood (2018) stated that in today's world, coupons are consider one of the
most effective promotional strategy as it helps the online platform to build the customer base.
Moreover, the coupons are also become the crucial part of the social media marketing which are
also strategically used by the business (Using coupon as a promotional strategy, 2018). For
example, in order to turn the coupons into a long term marketing strategy and also to encourage
the repeat customers is to require then to provide their name and email address so that they will
easily get coupons. As a result, it will help to encourage their return and also offer new products
for the marketing campaigns as well. Therefore, using coupons strategy by Saoq.com is quite
beneficial and also help to attract wide range of customers as well.
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CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is the specific procedure and techniques that is actually used to
identify, select and process in order to analyze the information about the topic . Moreover, this
section also allow a researcher to critically analyses the study's overall validity and reliability as
well. This section covers research philosophy, research paradigm, research approach and
strategy, data sampling, data collection, data analysis and ethical consideration which are as
mention below:
Research philosophy: research philosophy is defined as the different beliefs and
thinking which is behind the way data relating to the research topic is gathered, analyzed and
evaluated and used for the completion of research (Dougherty, Slevc and Grand, 2019). For this
present research on impact of coupon system on the consumer behavior within the e- commerce
business philosophy of epistemology was used. This is selected by the researcher because of the
fact that this studies the scope and nature of the knowledge relating to the research topic. The
epistemology is the study of the origin that is the basic of the topic because the philosophy can
be generated only if the person has basic knowledge relating to the topic. Thus, the use of
epistemology will help the researcher in finding every little detail relating to the research topic.
Since the research deals in identifying the impact of promotional tools or coupon system over the
behavior of consumer within the e- commerce industry. Thus, epistemology will assist the
scholar in finding the facts from starting and this will increase the knowledge base of the
researcher. Also, since this will gather data from the initial level so all the major changes and
developments will be highlighted and this will help the researcher in analyzing the data properly.
Research paradigm: this is defined as the common beliefs which are shared by the
scientist relating to the fact that how problems must be understood and solved. The research
paradigm is the established approach which is used in completing the research with success. The
research paradigm used for conducting research on impact of coupon over the consumer
behavior for Souq.com an e- commerce business positivism was used. This was selected because
of the reason that this is based on setting of hypothesis and is tested to prove it correct. For the
research topic first hypothesis are set and then measures are taken in order to prove the
hypothesis and justify them properly. Under this paradigm the data is collected relating to the
research topic and then analyze and evaluate the data being collected (Zhao, Varin and Graham,
2019). This analysis and evaluation of data will help the researcher in knowing the fact that
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whether the hypothesis is achieved or not. Also, there will be qualitative analysis of the literature
relating to the research topic. Here views of different authors and writers was discussed relating
to the research topic.
Research approach and strategy: It is the plan and the procedure which is actually
comprises of different steps of using broad assumptions in the detail methods of data collection
as well as interpretation. There are two types of strategy such that qualitative and quantitative
research strategy. Qualitative research methods are actually used to collect non- numerical
information which help to reveal the behavior as well as point of view of different target
audience with reference to particular topic (Kennedy, 2017). While, quantitative research
methods refers to the systematic investigation of the phenomena that helps to gather the
information and then perform through statistical techniques such as SPSS tool.
For the current project, researcher chooses both qualitative and quantitative research
strategy in order to draw the results. Such that the qualitative method are actually depends upon
the secondary data in order to show the relationship between the variables as per the current
studies. While on the other side, the quantitative methods are depends on the primary empirical
data so that it will help to determine the relationship between the consumer shopping decision as
well as system effectiveness. For that researcher uses SPSS tool which helps to critically
evaluate the Primary data in better manner.
Data sampling: It is the process which is used In statistical analysis in which the
predetermined number of observation are actually taken from the larger group of population.
Therefore, it is completely depend upon the type of analysis which is being performed. There are
two types of sampling method i.e. Probability and non- probability sampling method. Further
probability sampling method completely depend upon the research findings and also helps to
increase the accuracy of a sampling error estimation as well (Hennink, Hutter and Bailey, 2020).
On the other side, non- probability sampling method refers to that not all the members o the
population has a chance of participating in the study and it is not feasible to draw to the random
probability which is further based upon the sample.
Researcher uses simple random sampling methods under probability sampling in which
50 respondents are selected in age of 22 to 40 years. This data sample will be done in local
manner from Dubai, UAE and it also includes both men and women who generally shop online
and actually used online websites as well. Therefore, by using simple random sampling method,
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researcher also come to know their views which help to attain the defined aim and objectives in
precise manner.
Data collection: it is the process of gathering and measuring the information from
specific and validate techniques. Through data collection methods, the researcher collect the best
information which helps to make decision in better manner. Further, there are two types of data
collection methods i.e. primary data collection methods which is the process of collecting the
information for the first time and survey, interviews and experiments are part of it (Mikkonen
and Kyngäs, 2020). Another type is secondary data collection methods which are already
collected by someone in books, articles and newspaper.
In this research, researcher uses both primary and secondary data collection methods in
order to determine whether coupon and discount strategy are helpful for Sauq.com. Such that
under primary data collection method, researcher use survey as its research tool so that it will
help to determine the consumer behavior. Further, the questionnaire contain questions which
assist the researcher to attain the aim and objectives. Under secondary method of data collection
method, researcher uses already published articles and books, journals and newspaper in order to
collect the information and to determine whether the coupon and discount strategy will help
Sauq.com to increase sales or not.
Data analysis: It is the process of cleaning, transforming as well as modeling the data in
order to discover the useful information in order to determine the correct information. Moreover,
it is the process of systematically applying statistical and logical technique that is used to
describe as well as illustrate the collected information in well manner (Tremblay and Loukas
2020). There are two types of data analysis such that qualitative and quantitative data analysis.
H1. There is an impact of coupon and discounts on buyer decisions in the same of souq.com in
the UAE.
H2. Sales promotions have positive effect on the buying activities of the buyers on souq.com
H3. Sales and discounts help souq.com in staying on top of its business competition in the UAE.
In order to attain the defined aim and objectives, researcher uses SPSS tool under
quantitative research strategy so that it will help to determine the impact of independent variable
which is a coupon and sales discount that will be measured through a regression analysis. It is so
because it help to determine the relationship between dependent variable as well as with
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independent variable. At the end, correlation analysis is also made through a statistical technique
so that it will help to determine the correlation between both variables.
Reliability and validity of the research: in order to reach the defined aim and
objectives, researcher uses credible sources as a secondary sources which helps to make sure the
reliability and this further make use of valid methods in order to test the hypothesis, data
collection as well as data interpretation, as a result, this leads to generate the best results too.
Further, the research validity also relies in the survey to the extent in which the survey measures
the right element which needs to be measured. Therefore, the validity refers to how well an
instrument measures the researcher. For the current study, with the use of articles, books,
Journals and newspaper which were published in last five years will help to collect the
information about the research aim. Moreover, through better primary data collection method
and questionnaire, researcher also come to know the views of different respondents.
Limitation: The research also faces different limitation, one of them is to find out the
enough number of people who actually respond to the research question in the survey. Therefore,
the researcher also faces issue related to less time because for data analysis, enough time is
required so that accurate results are conducted, but at the end , these limitation somehow affect
the overall research in just opposite way. Moreover, these two limitation may affect the entire
research up to some level.
Ethical consideration: Current research also consider all the ethical protocols because it is one
of the important to observe ethics in the research. Therefore, the current research also maintain
the transparency with the respondents in which proper communication is used. Further, to
representing the information in correct manner, the current research is ethically sound.
Moreover, proper confidentiality is also maintained and Privacy Act should also be followed so
that the respondents personal data should not be transferred to the third party (Görman, Ahlgren
and Nordström, 2020).
Proper clarity and transparency is maintain while conducting survey questionnaire and
the respondents will also be requested in order to respond to the research on voluntary basis. As a
result, the contribution will be politely acknowledged. Further, all the survey questions are also
designed without prejudice to make sure that all the respondents are not intimidated by the nature
of a questions. Moreover, there should not be any discrimination on the basis of the caste, gender
so that it will help to prevent it from any unethical conduct. Lastly, the questions asked in the
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survey methods should be clearly phrased so that the selected respondents may easily able to
understand it in clear manner and may also solve any complexities in order to facilitate the
participation.
Sources of primary and secondary data: fro secondary data, researcher uses peer
review articles, journals which help to make comparison and also generate the results that helps
me to reach the defined aim and objectives. In this, the discussion is entirely based upon different
factors which also contribute to make the coupon system applicable or the e-commerce store. For
primary data, researcher uses survey method in which questionnaire is designed in order to get
the response from men and women whose age in between 22 years to 40 years. Further, these
data is further analyzed by using the graphs, charts in Word or excel.
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CHAPTER 4: DATA ANALYSIS & FINDINGS
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
You make an idea about
magnitude of discount
offered on product?
50 1 5 1.64 1.045
Idea you make about
magnitude of discount
amount affect your purchase
decisions.
50 1 5 1.66 1.022
If on any branded product
discount of small amount is
given you prefer to buy it?
50 1 5 1.44 .812
If on any non branded
product discount of small
amount is given you prefer to
buy it?
50 1 5 2.22 1.389
On any branded product if
discount amount is high then
you prefer to but it.
50 1 5 1.64 1.083
On any non-branded product
if discount amount is high
then you prefer to but it.
50 1 5 2.10 1.432
You search for coupons
while making purchase
decisions?
50 1 5 1.88 1.206
Coupon offers in substantial
numbers are available on
Souq website.
50 1 5 1.56 .812
Coupons offers lead to
purchase from your side
from Souq website.
50 1 5 1.60 .808
If coupon is available on
purchase of large value you
prefer to buy product.
50 1 5 2.66 1.636
If coupon is available on
least value of purchase you
prefer to buy product.
50 1 5 1.58 1.090
15

People commonly visit online
retailers that offer coupon
and discount in substantial
number.
50 1 5 1.74 1.157
If large number of coupon
and discount are available
on online platform of specific
company you prefer to visit it
to make purchase.
50 1 5 2.32 1.269
Souq.com is on top in
competition relative to rivals. 50 1 5 1.64 1.139
Discount and coupon assist
Souq to compete with rivals. 50 1 5 2.34 1.493
Valid N (listwise) 50
(1= Strongly agreed, 2= Agreed, 3= Neutral, 4= Disagreed, 5= Strongly disagreed)
From the descriptive statistics, it is analyzed that the mean value is 1.64 and standard
deviation is 1.045 which means that majority of the respondents are agreed that they make an
idea about magnitude of discount offered on product, while on the other side, as per another
question it is analyzed that mean value is 1.66 and standard deviation is 1.022 which means that
selected respondents are in favor that they are agreed that when company offered the discount on
specific product then their decision making will definitely got affected. From the third one, it is
interpreted that mean value is 1.44 and standard deviation is 0.812 which means that majority of
the respondents are in strongly agreed that they uses customer buy the product when discount are
offered on small products. Additionally, the mean value is 1.88 and standard deviation is 1.083
which means that majority of the respondents are strongly agreed that they generally prefer
coupons while making purchase decisions. Moreover, the mean value shows that majority of the
respondents are strongly agreed that discount and coupon also helps Souq.com to compete with
rivals and as a result, they further develop the best strategies in order to stay ahead in the
competition.
Overall, it is concluded from the likert scale that majority of the respondents state that
they prefer to use coupons as it helps in purchasing the product from Souq.com. Further, it is also
analyzed from the likert scale that if coupon is available on the least value of the purchase and
the respondent also prefer to buy the same product as well. Therefore, it is clearly reflected that
16

using effective promotional strategy will help a business to reach at further level of success and
also generate the sales as well. But it is also critically evaluated that many respondent did not
know if the coupon is available on the purchase of a large value they they did not prefer to buy
the product and as a result. Overall, it is analyzed that using coupon and discount as a
promotional strategy will help the business to increase the sales and also increases the overall
brand value as well.
Regression is the one of the most important technique that is used to evaluate variables
and relationship that exist between them. By using regression analysis, it is identified whether
independent variable is significantly affected by the dependent variable. If alternative hypothesis
accepted then it means that independent variable is signifyingly and entirely responsible for
variation in the dependent variable. On other hand, if significance is not achieved then it means
that there may be any other variable that is responsible for variation in the dependent variable. It
can be said that regression analysis is the one of the most important technique that is used by the
companies that make decisions. Regression analysis clearly indicate the degree of variation that
comes in the dependent variable due to change in the independent variable. Thus, it can be said
that regression to great extent assist analyst in analysing variables in dept and in proper manner.
This is the reason due to which in case of most of data is analysed by using regression analysis
method.
H1. There is an impact of coupon and discounts on buyer decisions in the same of souq.com in
the UAE.
Discount amount and purchase decisions
H0: There is no significant impact of discount amount on people purchase decisions.
H1: There is significant impact of discount amount on people purchase decisions.
Variables Entered/Removeda
Model Variables
Entered
Variables
Removed
Method
17

1
You make an
idea about
magnitude of
discount
offered on
product?b
. Enter
a. Dependent Variable: Idea you make about
magnitude of discount amount affect your
purchase decisions.
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
1 .456a .208 .192 .919
a. Predictors: (Constant), You make an idea about
magnitude of discount offered on product?
ANOVAa
Model Sum of
Squares
df Mean
Square
F Sig.
1
Regression 10.655 1 10.655 12.608 .001b
Residual 40.565 48 .845
Total 51.220 49
a. Dependent Variable: Idea you make about magnitude of discount amount
affect your purchase decisions.
b. Predictors: (Constant), You make an idea about magnitude of discount offered
on product?
18

Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) .928 .244 3.810 .000
You make an idea
about magnitude of
discount offered on
product?
.446 .126 .456 3.551 .001
a. Dependent Variable: Idea you make about magnitude of discount amount affect your
purchase decisions.
Interpretation
From the table given above it can be observed that value of R is 0.456 and statistic value
for R square is 0.208. This reflect that there is moderate correlation between variables. Means
that with change in independent variable moderate change can be observed in the dependent
variable. Value of level of significance is 0.001<0.05 which indicate that with change in the
independent variable significant difference comes in the dependent variable. Alternative
hypothesis accepted and it is concluded that magnitude of discount amount affects people
purchase decisions. Coefficient value is 0.928 which means that with change in magnitude of
discount purchase behaviour may change by given points.
Coupon and purchase decisions
H0: There is no significant impact of coupon on people purchase decisions.
H1: There is significant impact of coupon on people purchase decisions.
Variables Entered/Removed
Model Variables
Entered
Variables
Removed
Method
19

1
Coupon
offers in
substantial
numbers are
available on
Souq
website.b
. Enter
a. Dependent Variable: Coupons offers lead to
purchase from your side from Souq website.
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
1 .566a .320 .306 .673
a. Predictors: (Constant), Coupon offers in substantial
numbers are available on Souq website.
ANOVAa
Model Sum of
Squares
df Mean
Square
F Sig.
1
Regression 10.249 1 10.249 22.617 .000b
Residual 21.751 48 .453
Total 32.000 49
a. Dependent Variable: Coupons offers lead to purchase from your side from
Souq website.
b. Predictors: (Constant), Coupon offers in substantial numbers are available on
Souq website.
20

Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) .722 .208 3.472 .001
Coupon offers in
substantial numbers are
available on Souq
website.
.563 .118 .566 4.756 .000
a. Dependent Variable: Coupons offers lead to purchase from your side from Souq website.
Interpretation
In the table given above value of R is 0.566 and statistic for R square is 0.320. This
indicate that moderate relationship exists between variables and with change in independent
variable moderate change comes in the dependent variable. Value of level of significance is
0.00<0.05 which clearly reflect that there is significant impact of independent variable on the
dependent variable. Alternative hypothesis accepted. It can be said that if coupon in large
number are offered by the retailer then in that case demand also increased at rapid pace. Value of
coefficient is 0.722 which means that with change in the independent variable dependent variable
change by given points.
Branded products purchase behaviour evaluation in respect to higher and lower discount
amount
H0: There is no significant difference between higher and lower discount offers in terms of
purchase of same branded product.
H1: There is significant difference between higher and lower discount offers in terms of purchase
of same branded product.
Group Statistics
21

On any branded product
if discount amount is
high then you prefer to
but it.
N Mean Std.
Deviation
Std. Error
Mean
If on any branded
product discount of
small amount is given
you prefer to buy it?
>= 3 7 1.29 .488 .184
< 3 43 1.47 .855 .130
Independent Samples Test
Levene's
Test for
Equality
of
Variances
t-test for Equality of Means
F Sig. t df Sig.
(2-
tailed)
Mean
Difference
Std. Error
Difference
95%
Confidence
Interval of the
Difference
Lower Upper
If on any
branded
product
discount
of small
amount is
given you
prefer to
buy it?
Equal
variances
assumed
.989 .325 -.53
8 48 .593 -.179 .333 -.850 .491
Equal
variances
not
assumed
-.79
4 13.030 .441 -.179 .226 -.667 .308
Interpretation
22

By applying T test attempt is made to find out if discount of higher and lower amount is
given purchase of the branded product get affected or remain same. In the above table it can be
seen that value of level of significance is 0.593>0.05 which clearly indicate that no significant
difference comes in the purchase behaviour of people if higher or low discount is given on
branded product. Null hypothesis accepted. Value of statistic (M = 1.29, SD = 0.488) in case of
groups above cut point and in case of groups below cut point same is (M = 1.47, SD = 0.855).
23

Non-branded products purchase behaviour evaluation in respect to higher and lower discount
amount
H0: There is no significant difference between higher and lower discount offers in terms of
purchase of same non-branded product.
H1: There is significant difference between higher and lower discount offers in terms of purchase
of same non-branded product.
Group Statistics
On any non-branded
product if discount
amount is high then you
prefer to but it.
N Mean Std.
Deviation
Std. Error
Mean
If on any non branded
product discount of
small amount is given
you prefer to buy it?
>= 3 16 2.88 1.360 .340
< 3 34 1.91 1.311 .225
Independent Samples Test
Levene's
Test for
Equality
of
Variances
t-test for Equality of Means
F Sig. t df Sig.
(2-
tailed)
Mean
Difference
Std. Error
Difference
95%
Confidence
Interval of the
Difference
24

Lower Upper
If on any
non
branded
product
discount
of small
amount is
given
you
prefer to
buy it?
Equal
variances
assumed
.501 .482 2.395 48 .021 .963 .402 .155 1.772
Equal
variances
not
assumed
2.363 28.510 .025 .963 .408 .129 1.798
Interpretation
By applying T test effort is made to investigate if discount of higher and lower amount is
given on non-branded product then in that case purchase get affected or not. In the above table it
can be seen that value of level of significance is 0.021<0.05 which clearly indicate that
significant difference comes in the purchase behaviour of people if higher or low discount is
given on non-branded product. Alternative hypothesis accepted. Value of statistic (M = 2.88, SD
= 1.360) in case of groups above cut point and in case of groups below cut point same is ( M =
1.91, SD = 1.311).
25

H2. Sales promotions have positive effect on the buying activities of the buyers on souq.com
H0: There is no significant impact of sales promotion on people purchase decisions.
H1: There is significant impact of sales promotion on people purchase decisions.
Variables Entered/Removed
Model Variables
Entered
Variables
Removed
Method
1
People
commonly
visit online
retailers that
offer coupon
and discount
in substantial
number.b
. Enter
a. Dependent Variable: If large number of
coupon and discount are available on online
platform of specific company you prefer to visit
it to make purchase.
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
1 .517a .267 .252 1.098
a. Predictors: (Constant), People commonly visit online
retailers that offer coupon and discount in substantial
number.
26

ANOVAa
Model Sum of
Squares
df Mean
Square
F Sig.
1
Regression 21.043 1 21.043 17.464 .000b
Residual 57.837 48 1.205
Total 78.880 49
a. Dependent Variable: If large number of coupon and discount are available on
online platform of specific company you prefer to visit it to make purchase.
b. Predictors: (Constant), People commonly visit online retailers that offer
coupon and discount in substantial number.
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 1.335 .282 4.728 .000
People commonly visit
online retailers that
offer coupon and
discount in substantial
number.
.566 .136 .517 4.179 .000
a. Dependent Variable: If large number of coupon and discount are available on online platform
of specific company you prefer to visit it to make purchase.
Interpretation
Sales promotion is the one of the most important tasks of the marketing department. In today era
competition is increasing at fast pace and due to this reason, it become very important for the
firms to make available offers in such a way that assist them in retaining customers for long
term. In present case attempt is made to identify whether sales promotion is playing any crucial
role in motivating people to make purchase of the products from the company stores or online
27

platforms. It can be observed that value of R is 0.517 and same of R square is 0.267. It can be
said that there is moderate correlation between variables. Correlation is the one of the most
important method that is used to investigate relationship between variables. Correlation value
may be positive or negative. If correlation value is positive then it means that variables are
corelated to each other in same direction. Means that if one variable value will increase then
same of other will also increase. On other hand, negative correlation means that variables are
inversely related to each other. Means that if one variable value increase then same of another
variable will decrease. In present case value of correlation is positive and this means that both
variables are moving in same direction. If one is increasing then other also increase and if one
decrease then other also decrease. If correlation value is below 0.40 then it means that variables
are less correlated to each other. If correlation value is more then 0.40 and less then 0.70 then it
means that variables are moderately correlated to each other. If correlation value is more then
0.70 then it means that variables are highly correlated to each other. Value of level of
significance is 0.00<0.05 then it means that there is significant impact of one variable on another
variable. It can be said that if more and more offers will be given to the people sales will increase
on store and online platform. Alternative hypothesis accepted.
28

H3. Sales and discounts help souq.com in staying on top of its business competition in the UAE
H0: There is no significant role of sales and discount offers on assisting Souq to become top
retailer.
H1: There is significant role of sales and discount offers on assisting Souq to become top retailer.
Variables Entered/Removeda
Model Variables
Entered
Variables
Removed
Method
1
Discount and
coupon assist
Souq to
compete with
rivals.b
. Enter
a. Dependent Variable: Souq.com is on top in
competition relative to rivals.
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R
Square
Std. Error of
the Estimate
1 .470a .221 .204 1.016
a. Predictors: (Constant), Discount and coupon assist Souq
to compete with rivals.
ANOVAa
Model Sum of
Squares
df Mean
Square
F Sig.
1 Regression 14.012 1 14.012 13.585 .001b
29

Residual 49.508 48 1.031
Total 63.520 49
a. Dependent Variable: Souq.com is on top in competition relative to rivals.
b. Predictors: (Constant), Discount and coupon assist Souq to compete with
rivals.
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) .802 .269 2.981 .004
Discount and coupon
assist Souq to compete
with rivals.
.358 .097 .470 3.686 .001
a. Dependent Variable: Souq.com is on top in competition relative to rivals.
Interpretation
In the above table value of R is 0.470 and R square is 0.221. This indicate that there is
moderate correlation between both variables which means that sales and discount help business
firm in staying on topic of competition moderately. Value of R square is 0.221 which means that
22% of variation of dependent variable is explained by the independent variable. Value of level
of significance is 0.001<0.005 which means that there is significant difference between variables
and it can be said that offers launched by the company heavily play a very important role in
maintain it on top position in the industry.
30

CHAPTER 5: CONCLUSION AND RECOMMENDATION
Conclusion
By summing up above, it has been concluded that using best promotional tools such as
coupons and discount will help the business to raise the brand image as well as establish the
customer base too. Further, research also analyzed from the literature review that both discount
and coupon promotional strategies plays a crucial role to increase the sales and e-commerce
platform also uses modern form of marketing in order to generate the sales by selling the
products online. Moreover, from this section it is also analyzed that there is a need to study the
customer behavior because there are many factor which directly affect their buying decision
making such that personal factor, psychological factor etc. thus, author concluded that in every
online business, there is a need to determine the customer behavior and in modern day, the
digital advertising as well as data analysis strategies are basically designed to determine how the
customer behave. In the same section, dissertation also concluded that by using coupon strategy
by Souq.com, company may easily generate the sales and also increases the brand reputation in
the market. Further, using effective coupon startegy, company also influence customer to repeat
their buying behavior so that they will easily enhance their sales and establish customer base too.
From the research methodology section it has been concluded that the research is based
upon both qualitative and quantitative strategy in which researcher generated the results by using
descriptive as well as SPSS tool so that defined aim and objectives are easily attained. Through
this section, it has been concluded that three different hypothesis is generated which helps to
determine whether coupon and discount strategy creates direct impact upon company's sales or
not. Moreover, from the data analysis section it has been concluded that majority of the
respondents are in favor that because of different coupons and discount strategy, company
influence their customers to purchase the product from Souq.com again and again. As a result, it
will help the firm to reach wide range of customers as well as increases the overall business
financial performance too. Moreover, it is also concluded from the data analysis section that
majority of the respondent are strongly favored that coupon applied by the firm offers in
substantial numbers which are available on the company's website so that the customers will
easily get benefited form the offered discount by the firm. Moreover, it is also concluded that the
company should uses different promotional tools because it definitely draw attention of many
customers and as a result, it also leads to generate the sales of a firm as well.
31

Recommendations
With the help of the above discussion it is clear that the coupon system and the promotional
activities have impact over the consumer behavior in e- commerce sales. Thus, there are some
recommendation for Souq.com for the improvement of the sales for the company. some of the
suggestion for the company are discussed as following in the connected points below-
The first and foremost suggestion is to use effective tool for analyzing the behavior of the
consumers. This is majorly because of the reason that if the consumers will not like the discount
and coupon facilities then it is of no use to provide such facilities. Thus, Souq.com need to take
review of consumers relating to the products as well as different schemes of promotion used.
This can be done with either direct contact or even with help of online feedback form which the
consumer needs to fill at time of purchasing from the website of Souq.com.
Another recommendation is to decrease the amount of minimum purchase on which the
discount vouchers and discount coupons. Like for instance on purchase of 5000 discount coupon
of 1000 will be provides. This needs to be changed because it is not possible for medium or low-
class people to grab this opportunity. Thus, by keeping this section of consumer in mind
company must lower the minimum purchasing amount. As a result, this will increase the sales
for the company as the people who earlier were not in position of buying will also buy.
Another recommendation is to use seasonal discounts which is a good way of increasing
sales. It means that the discount needs to provide on the things which are not according to the
season. Like for instance, in summers discount on winter clothes must be given. This is majorly
because of the reason that in summers also people will buy winter clothes as well and this will
clear the dead stock also.
One more recommendation for Souq.com is that the company must provide an option of
free shipping to all the consumers. This is a good method because this will attract more of the
consumers and this in turn will increase the sales of the company.
Another recommendation for the company is to provide the weekly and monthly offers as
well. This is also a discount method which will help the company in increasing the sales for the
company. This discount or offer need to be provided to the loyal consumers who purchase goods
from this e- commerce site only. This is also beneficial because the other consumers will also be
attracted to shop with this site as the loyal consumers are provided with extra benefits and
advantages.
32

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