Sales Promotions on the Internet

We describe a sales promotion application for distributing and redeeming coupons on the Internet during online shopping. Various types of sales promotions and coupons, and the methods used to target coupons to select potential buyers are reviewed. Security mechanisms needed to prevent alterations, duplication, and trading of coupons by customers, and fraudulent use of manufacturer's coupons by retailers are identified. An implementation of electronic coupons is described. The impact of coupon trading and duplication, facilitated by the Internet, on the effectiveness of sales promotion campaigns is discussed.