Chapter 2: Deals Galore at Groupon Video Case Questions: 1. What features of contemporary e-commerce does Groupon Now! Utilize? a. I think that Groupon Now is utilizing the mobile app as a way to allow both consumer and merchant to communicate with each other. Now, most websites have a mobile app or something similar so people can be connected all the time, like Ebay. It’s very easy to use and therefore increases the chance of consumers purchasing a deal. It allows for people to share things with their friends, which is vital in social networking and allows for the service provider to receive more customers. It also uses personalization as a tool. It’s also great that a subscriber can show the coupon on the phone rather than have to print it out like other coupons. It provides value to customers and it’s providing a service that is in demand for many people, not just college students looking to save a dollar. It also gives buying power to the consumers and still maintains control for the merchant. 2. What value does this service provide subscribing merchants? What value does it provide customers? b. It provides merchants the value of control over their revenue and when and how much to release the deals for. The fact that the deals are limited in time and quantity helps merchants know the business they might have and be prepared for it. It’s also good that a certain number of coupons must be sold, so that the merchant is making some profit from the deal. It’s also very convenient for them to track everything on the phone or online. It saves money and time from marketing and printing deals. This way they know that it goes out exactly to the customers. It can possibly lead to new returning customers to the business. c. For the customer it provides convenience of having all the deals in one place that can be used for any part of one’s lifestyle. It’s always a bit of difficult transition to try something new for people, so the incentive to try something new without as high of a financial risk is of great value. Also, it helps people afford things that they need to do but don’t because of the high price. It’s of value as well having the deals always changing because it allows for excitement in people’s lives getting to try something new all the time. An example of that is having a 70% off of skydiving. 3. What kinds of businesses are most likely to benefit from using Groupon? d. I believe established businesses that are interested in getting more customers or new business that can get new customers to come and try them when they first open. Businesses that people only have to use every once in a while like car detailing; and services like food and health & beauty where people tend to just have a favorite location, the deals help pull away those customers and get them to try a new location for a better price. 4. Visit Groupon’s Web site and enter your zip code. What kinds of deals are displayed? Would you use Groupon? Why or Why not? e. There are a variety of deals, ranging from health and beauty to car services. I just recently used Groupon to purchase a car detailing service for a really good price. I use it because I like that it’s always changing, and that it’s offering deals for things that actually need and want. Although the majority of services are offered in larger cities, there are still some available near by. 5. Are there any disadvantages to both customers and merchants in using Groupon Now? f. Some of the disadvantages to the merchant are if the customers are only there to use the coupon and they aren’t planning on returning. So they wouldn’t necessarily be making that much of a profit from the deal in the long run. g. To customers, a disadvantage would be to having to purchase the coupon before the time runs out rather than when you intend on using it and there’s an expiration for the deal after it’s purchased.