Are Coupons Still Worth Using?

Lines for checkout counters in the 1990s had a long wait because 1) you couldn’t order things on the internet, and 2) Mrs. Jones was pulling out coupons for half of the items she was buying! Why did Mrs. Jones use so many coupons? Well of course to save money, but also because with each successful coupon scan, Mrs. Jones got a little boost of oxytocin, the "feel-good hormone." Researchers say that when people use a coupon, they get a 14% increase in oxytocin¹.

Coupons have played a large role in our society. According to research from Syracuse University, 85 percent of consumers were looking for coupons prior to visiting a retailer in 2013². With everyone going online in 2020 because of COVID, that number jumped up to 92%³.

Traditional vs Online Coupons

Many of the traditional coupons we saw out there in the 90s and early 2000s have become baked into our digital shopping experience. Instead of offering printed coupons, many companies offer digital coupons or online discounts instead. For example, on Amazon.com if a business wants to offer a coupon they may do so, but the customer must check a box if they want to apply the coupon toward their purchase.

Why don’t they just list their product at a discount instead?

Well, two reasons.

1) There are plenty of people who want an item quickly and don’t pay attention to the coupon. Therefore, they pay $40 when they could have been paying $32 or whatever the case may be. This, of course, brings the most profit to the business.

2) There’s a psychological difference between using a coupon and buying at a discount. When you use a coupon, you feel like you accomplished something (moreso than buying at a discount). When you click that little “apply coupon” button, you feel proud that you saved your family some money – woohoo! Nathaniel Meyersohn from CNN Business writes about this, “Amazon’s tactic to display a coupon option, instead of just automatically showing a discounted price, gives shoppers an extra incentive to make the purchase right away, say marketing experts. Customers also want to be rewarded for the effort they put in to shop. It may not feel like much to click a box — but it does make a difference.⁴”

Are Coupons a Good Idea?

Finding and using coupons – which have largely evolved into promo codes – is typically a good practice, especially if you’re making a large purchase. If you’re going to buy a $400 dishwasher, for example, it wouldn’t hurt to do a 1-minute Google search for promo codes to the website you’re buying from. That 1-minute search could result in a 10% off code that could save you $40 bucks! Getting on coupon sites or using trusted online coupon finder products are great tools to use before buying a product.

However, keep in mind that it is wise to find and use coupons if you were already going to purchase an item. If you were not planning on buying an item that you do not need, it can still be tempting to buy that item if there’s a great coupon or discount for it. This is the entire reason retailers offer coupons – they want people who were not looking for their product to buy it. This can ultimately affect your personal budget negatively if you aren’t careful.

It’s a good idea to avoid spending impulses and stick to a pre-determined budget. Remember to use coupons primarily for items you’re already planning on buying. Happy shopping!

The information provided in this article is for general informational purposes only and should not be construed as financial advice. Before making any financial decisions, it is strongly recommended that you consult with a certified financial planner™, attorney, accountant, or another trusted financial professional to assess your individual circumstances.

¹ Dr. Paul Zak, Your Brain on Coupons: Neurophysiology of Couponing

² Syracuse University’s online Master’s in Accounting program, https://onlinegrad.syracuse.edu/blog/coupons/

³ https://www.statista.com/topics/2162/digital-coupons-and-deals/

⁴ Nathaniel Meyersohn, https://www.cnn.com/2022/03/26/business/amazon-coupons-shopping-psychology/index.html