What is the difference between a coupon and a deal?

Coupons are sales promotions that offer a discounted price to the consumers. They are typically used to encourage trial among consumers and support among retailers. Deals are short-term price reductions used to increase trial among potential customers or to retaliate against a competitor's actions. The latter is accomplished because customers build up inventory as a result of the deal and, therefore, do not react to competitive actions (a new-product introduction, for example). See Figure 19-6.