A coupon is a voucher that entitles the holder to a discount on a particular purchase. The issuance of a coupon allows the seller to advertise the discounted price of a product or service, net of the coupon, while not necessarily paying the amount of the coupon; a buyer must take action to present the coupon in order to receive a discount. Only the more price-sensitive shoppers collect and present coupons; all other shoppers typically pay full price. Thus, the net result of a coupon issuance is a relatively small discount from gross sales for the seller.

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