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The economist Alex Tabarrok has argued, that the success of this promotion lies in the fact that consumers value the first unit significantly more than the second one. So compared to a seemingly equivalent "Half price off" promotion, they may only buy one item at half price, because the value they attach to the second unit is lower than even the discounted price.
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]
Coupons are normally described in terms of the "coupon rate", which is calculated by adding the sum of coupons paid per year and dividing it by the bond's face value. [2] For example, if a bond has a face value of $1,000 and a coupon rate of 5%, then it pays total coupons of $50 per year.
On its release, The Decadent Chocolate Chip Cookie contained 39% chocolate chips by weight, more than double the leading national brand. It soon became the best selling PC product, and within three years was Canada's best-selling cookie, even though it was available in only 20% of Canadian food stores. [12] Not all PC products were hits.
On 20 April 2021, [256] Venmo added support to its platform to enable customers to buy, hold and sell cryptocurrencies. [ 257 ] In October 2021, financial services company Mastercard announced it is working with digital asset manager Bakkt on a platform that would allow any bank or merchant on the Mastercard network to offer cryptocurrency ...