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On what criteria we can define the priority and change frequency in the sitemap.

Example if the website is a coupon/service website.

  • The Home Page must be priority 1 Updated Daily
  • Category Pages must be priority 1 Updated Daily
  • Coupon Pages must be priority 0.5 Updated Weekly

Are the above settings correct?

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That seems fine, however search engines tend to ignore those settings. There may still be some services out there that will actually use those fields, but I don't know of any that still use them to advise crawl rates.

2

There is nothing about them that "must be." The only thing you must do is conform to the standard.

Whether these setting take any effect is not proven. John Mueller at Google says they don't have any effect on Google. Only timestamp is worth adding.

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