Analyzing the Impact of Coupons and Promotions on E-commerce Behavior

This report investigates the impact of coupon systems and promotional activities on consumer behavior within the e-commerce sector, using Souq.com as a case study. The research explores how coupons and discounts influence online shopping decisions, aiming to understand their effectiveness in generating revenue and attracting customers. The study includes a literature review examining the role of sales promotions, discounts, and coupon strategies in increasing sales and the importance of understanding consumer behavior. The methodology involves analyzing the impact of coupons on consumer behavior and sales, examining the effectiveness of marketing strategies. The findings, based on data analysis, demonstrate that coupons and discounts significantly impact consumer buying decisions, positively affecting sales. The report also highlights the importance of these promotions in maintaining a competitive edge in the e-commerce market. The conclusion and recommendations provide insights for e-commerce businesses to leverage coupon marketing to enhance sales and customer engagement.

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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