http://hbswk.hbs.edu/item/6600.html
I found this article interesting because I used Groupon to get cheap tickets off of Fandango to see Pirates of the Caribbean 3 about two months. The deal was buy a promo code for $4 and get $12 off your ticket. So, I bought two; one for me and one for my boyfriend. I made him buy the tickets. The tickets were for PofC 3 in 3D, he ended up only paying $.50 extra that the promo codes would not cover. Needless, to say I also made him pay for the concessions.
Groupon has grown a lot since it came out two years ago and has inspired a new site called LivingSocial, which does the same thing Groupon does basically. But these two sites give you discounts at a cheap price for what would be expensive items, such as a meal for two at a restaurant or movie tickets.
1) Do you think Groupon is good for retailers or not? Explain.
2) Is Groupon a good way for retailers to advertise their products?
1. I think that Groupon is good for retailers because someone may be interested in trying someplace like a restaurant but they don't want to pay full price since they aren't sure if they'll like it. If Groupon features a gift certificate for dinner for say $20 versus spending $40 people would be more inclined to try it. Then if they liked it they would go back another time and spend $40.
ReplyDelete2. Groupon is a good way for retailers to advertise because people can see things on Groupon and get ideas of where to eat or what to do for fun.
I believe it is good for retailer because you may attract customers who wouldn't have shopped with you. I can say for myself, if I receive a coupon for a buy one get one free meal I would be more likely to try a new restaurant out. Then if I like the restaurant I would continue to eat there.
ReplyDeleteI believe these websites will help companies advertise their products and help get their name out there.
Based on this article im not sure if Groupon is a great on terrible ideal or not. Ugh.... I guess I’ll say that it depends on the size of the company and like the article says if your product is perishable and low cost of goods sold. That theory makes sense to me. If your are selling a product that fits this model, then you could do with the exposure that a company like groupon could give you.
ReplyDeleteI think that groupon is a great way to advertise their products! I do groupon and I am introduced to a variety of local restaurants that I never knew existed!
Lovas,
anna*
1. I am a groupon addict, so i know its good for retailers. My dad and I actually went out for a dinner at a place called "Maximillians Pizza Kitchen" in Cary. I had NO idea it was there until i saw the Groupon.
ReplyDelete2. There is a place for a description in the Groupon which describes the services or menu items for the specific place. Even if someone doesnt end up getting the Groupon, they did see the description of your business and if they didnt know about you before, they do now!
I definitely think Groupon is a good idea for retailers. There are a ton of people out there who buy something just because it's a deal. People might see a deal for a nice dinner for 2 for $20 and purchase it because it's a great deal, even though they had been trying to save money. It also encourages people to try new things. One of the most important things customers can do is bring people in. From there, they only have to keep them there and coming back. Groupon can take some of the work out of attracting the customers for them.
ReplyDeleteSo the paper addressed the issue of tax . . . are you taxed on full price or groupon price? Which leads me to wonder, if you are dining on a groupon, do you tip at full price our groupon price?
ReplyDeleteLike everything else there are good and bad sides. It's great for the consumer who uses the groupon purchased, but what if you bought a block of 10 yoga sessions and mid way through the first session you discover you really don't like yoga? Your stuck, there is no refund.
And it's a double-edged sword for retailers. While it's cheap publicity, people like to scam. I have a neighbor who loves extreme couponing. With a family of six, she would find a way to get every last penny spent on the groupon maxed to her family's benefit.
And then there are people like me, I went the first time because of Groupon. You want me to come back, I'll need another coupon.
I think Groupon is a great way for small and start-up businesses to advertise themselves. It's inexpensive advertising that brings in a larger population. Here in the RDU area, I'd expect offering Groupon to customers would be more cost-effective advertising than an ad in the N&O or Independent.
I think Groupon is actually very good for retailers, because it is is a way of marketing. I have used it to go to many places that I would not usually go to. It's pretty much a win-win in my opinion; I am getting a great discount and they are getting me as a customer. Better them having me pay half price than nothing at all.
ReplyDeleteI think it is a good way for business to advertise new products and get people to try them. If a customer likes the product after getting it for a discounted price, then maybe they will come back to get it again for regular price, knowing they will use it.