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

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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