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Free refills are seen as a good way to attract customers to an establishment, especially one whose beverages are not their primary source of income. [1] Due to the extremely low cost of fountain soft drinks (especially the beverage itself, not including the cost of the cup, lid and straw), often offering a profit margin of 80-82%, establishments tend to offer free refills as a sales gimmick. [3]
Coupons can be used to research the price sensitivity of different groups of buyers (by sending out coupons with different dollar values to different groups). Time, location and sizes (e.g. five pound vs. 20 pound bag) [12] affect prices; coupons are part of the marketing mix. [13] So is knowing about the customer. [14] [12]