Traditionally, a coupon is a ticket that can be used to get a rebate on the purchase of a product. Coupons have several objectives, some of those are reported in the following table.
|1||Reduce the price of an item.|
|2||Provide a free sample.|
|3||Help track the customer demographics.|
In online payment processing, coupons are referred to as coupon codes, promotional codes, promo codes, discount vouchers, or re- ferral codes. They offer a discount to price-conscious consumers who, in the absence of a coupon, might go shop elsewhere.
Various types of coupons exist. The main ones are, of course, traditional discount and free shipping coupons, but other types of coupons offer a free item each time one item is bought.
Some coupons help promote free trials, whereas others are seasonal, e.g., they work when a product is launched or during the rebate season.