A shopper hands the cashier a printed slip that reduces the price of a detergent bottle by a set amount. That slip is a coupon. It is a targeted incentive offered by manufacturers or retailers to encourage purchase.

Coupons may be distributed on packages, in newspapers, by mail, through apps, or at the point of sale. Digital versions are scanned or clipped automatically. Restrictions usually limit the offer to specific products, sizes, or time periods. Retailers and brands track redemption rates to measure effectiveness.

Coupons can attract deal-seeking customers and clear excess inventory. They can also train shoppers to wait for discounts. Clear terms and easy redemption improve the experience; complicated rules produce frustration at the register. Despite the growth of automatic discounts, the coupon remains a familiar and flexible promotional tool.

A well-timed coupon can tip a hesitant buyer into a purchase.