Coupon In marketing a coupon is a ticket or document that can be exchanged for a financial discount or rebate when purchasing a product. Customarily, coupons are issued by manufacturers of consumer packaged goods or by retailers, to be used in retail stores as a part of sales promotions. They are often widely distributed through mail, magazines, newspapers, the Internet, and mobile devices such as cell phones. Internet coupons have become popular recently, because there is no postal cost, and the printing cost is borne by the user (who prints the coupons) rather than the businesses issuing them. Mobile coupons have emerged as a new and green alternative as no printing is required whatsoever. Mobile coupons as a method of coupon redemption are gaining in popularity as more consumers utilize their mobile devices for uses beyond voice. Origin In 1887, the Coca-Cola Company was incorporated with Asa Candler as one of the partners. He transformed Coca-Cola from an insignificant tonic into a profitable business by using innovative advertising techniques. The key to this growth was Candler's ingenious marketing including having the company's employees and sales representatives distribute complimentary coupons for Coca-Cola[1]. Coupons were mailed to potential customers and placed in magazines. The company gave soda fountains free syrup to cover the costs of the free drinks. It is estimated that between 1894 and 1913 one in nine Americans had received a free Coca-Cola, for a total of 8,500,000 free drinks. By 1895 Candler announced to shareholders that Coca-Cola was served in every state in the United States. History Coupons first saw widespread use in the United States in 1909 when C. W. Post conceived the idea to help sell breakfast cereals and other products. Today, more than 700 corporations offer coupons for discounts on products or services. Each year, coupons for consumer packaged goods generate nearly 3 billion dollars in transactions within the U.S. alone.[2] There are many different types of online coupons such as discounts, free shipping, first-time customer coupons, and free giveaways. Internet coupons Online retailers often refer to Internet coupons as "coupon codes", "promotional codes", "promotion codes", "discount codes", "key codes", "promo codes", "shopping codes", "voucher codes", or "source codes".[citation needed] Internet coupons typically provide for reduced cost or free shipping, a specific dollar or percentage discount, or some other offer to encourage consumers to purchase specific products or to purchase from specific retailers. Taxation Depending on the jurisdiction, coupons may or may not reduce the sales tax which must be paid by the consumer. A true coupon which reduces the selling price of a taxable item or group of items normally also reduces the tax. However, a "coupon" may also be treated as scrip, which is tendered as a payment, and therefore does not reduce the taxable amount. This is the case with the coupon-eligible converter boxes in the U.S., which compensate in part for the forced conversion to digital TV. Other uses In finance, with respect to bonds, a coupon is the interest rate that the issuer pays to the bond holders. In manufacturing and materials science, a coupon is a small piece of material used for testing or further processing, compare billet. "Football pools" promoters in the United Kingdom also use this name when referring to the paper grids which gamblers fill in to bet on the results of football (soccer) fixtures. On these, players will mark a number of crosses (x) against individual game listings to indicate which they believe will end as a draw, or tied match. Rewards for correct forecasting can be of very high monetary value. Love coupons and love coupon books are popular gifts on Valentine's Day and other anniversary days. They can be purchased in printed format, downloaded in digital format or be handmade. Voucher A voucher is a bond which is worth a certain monetary value and which may only be spent for specific reasons or on specific goods. Examples include — but are not limited to — housing, travel and food vouchers. The term voucher is also a synonym for receipt, and is often used to refer to receipts used as evidence of, for example, the declaration that a service has been performed or that an expenditure has been made. The term is also commonly used for education vouchers which are somewhat different. In tourism Vouchers are used in the tourism sector primarily as proof of a named customer's right to take a service at a specific time and place. Service providers collect them to return to the tour operator or travel agent that has sent that customer, to prove they have given the service. So, life of a voucher is as below: 1. Customer receives vouchers from tour operator or travel agent for the services bought 2. Customer goes to vacation site and forwards the voucher to related provider and asks for the service to be given 3. Provider collects the vouchers 4. Provider sends collected vouchers to the agent or operator that sends customers from time to time, and asks for payment for those services 5. Uncollected vouchers do not deserve payment This approach is most suitable for Free Individual Tourist activities where pre-allocation for services are neither necessary, nor feasible or applicable. It was customary before the information era when communication was limited and expensive, but now has been given quite a different role by B2C applications. When a reservation is made through the internet, customers are often provided a voucher through email or a web site that can be printed. Providers customarily require this voucher be presented prior to providing the service.