...Cluster 2 Case Study Groupon: Helping Consumers with Purchase Decisions Question A: Yes I have used Groupon. Question B: My purchase decision process was pretty simple. A group of friends and I wanted to try a painting and wine class, we heard from some other ladies that it was a really good time, so we stared doing some research on places. The most important thing to us was how much would it cost and if the business offered a painting that we all wanted to do. One of my girlfriends looked on Groupon and found that there were some places that offered what were looking for. After finding the Groupon, we went to that business’s website and looked to see what paintings they offered. We liked what we saw and bought them. Question C: My Groupon experience was great. It got us all out, which we desperately needed and got to venture into the city, which we hardly ever do. It was a lot of fun to do something new, different and creative. I have not gone back since then but we have been talking about doing another painting class again soon. I’m not sure if we’d go back to the same place or if we would try somewhere different to see what kind of paintings they offer. Overall it was a great place and I would recommend others try it. Question D: I have not considered using any of Groupons competitors. I go on Facebook pretty much daily, but don’t look for deals there. Honestly, if I want to do something new and/or was looking for a deal...
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...Groupon: Helping Consumers with Purchase Decisions McGraw-Hill Education Kerin Chapter 5 What if you and your friends could try new things and discover new places at a discounted price? Andrew Mason, an Internet entrepreneur, answers this question with his company, Groupon. Groupon offers group coupons through deal of the day offerings from local and national businesses. Consumers love the concept, buying everything from restaurant certificates to yoga lessons to tickets to a museum. Mason thinks the Internet has the potential to change the way people discover and buy from local businesses. Groupon actually started [inaudible] action, and the idea was to get those people together to solve kind of the world’s unsolvable problems, whether it was getting a bunch of people together to work with government or, you know, refurbish a local school, really accomplish anything that a group was looking to do. Eventually, it kind of morphed into people were looking for deals. They were kind of all trying to get around how do we — how do we take this group and put it into this commerce channel, and so we kind of took the idea up [inaudible], and we made it into Groupon. [Inaudible] 2008, 400 subscribers all the way up to more than 60 million worldwide. We’re in more than 40 countries, and we’ve saved consumers more than $2 billion [inaudible]. Groupon is an easy way to get huge discounts while discovering fun activities in your city. Each day we feature a cool new experience...
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...of TMA is 7 March 2014. A softcopy of your TMA in Microsoft Word should be submitted via Online Assignment Submission System (OAS). 6. A softcopy of your TMA must also be submitted to your class Turnitin. Case Study Groupon: Helping Consumers with Purchase Decisions Source: Groupon Sdn Bhd, via www.groupon.com.my, University of Chicago graduate student, Andrew Mason was in a rut. "There's so much to do in Chicago," he explains,"but I found myself going to the same movie theaters and restaurants." To help people like him try new places, Mason started a website that offered coupons to large groups. He reasoned that people would try something new if the price was low enough, and that businesses would offer low prices if they knew they Sem: July 2013 Page 2 of 5 BBM104/05 Principles of Marketing could sell a large quantity. The result was Groupon, a company that offers "group coupons" in deal-of-the-day offerings for local or national businesses. Consumers love the concept, buying everything from restaurant certificates, to yoga lessons, to tickets to a museum exhibit. "We think the Internet has the potential to change the way people discover and buy from local businesses," says Mason. The Company and Groupon Concept Mason launched Groupon in October 2008 with a two-pizzas-for-the-price-of-one offer at the Motel Bar, a restaurant located...
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...Groupon: Helping Consumers with Purchase Decisions University of Chicago graduate student Andrew Mason was in a rut. “There’s so much to do in Chicago,” he explains, “but I found myself going to the same movie theaters and restaurants.” To help people like him try new places, Mason started a website that offered coupons to large groups. The result was Groupon, a company that offers “group coupons” in deal-of-the-day offerings for local or national businesses. Consumers love the concept, buying everything from restaurant certificates, to yoga lessons, to tickets to a museum exhibit. “We think the Internet has the potential to change the way people discover and buy from local businesses,” says Mason. THE COMPANY AND GROUPON CONCEPT Mason started with a website called ThePoint.org, which was designed to organize campaigns, protests, boycotts, and fund-raising drives for important social issues. ThePoint was not successful but it provided the concept of making offers that are only carried out if enough people commit to participate in them. With that idea Mason launched Groupon in October 2008 with a two-pizzas-for-the-price-of-one offer at the Motel Bar, located in the same building where ThePoint rented space. The concept quickly grew in Chicago and Groupon expanded into other U.S. cities and then into other countries. Today Groupon is available in 375 American cities and 48 countries, and its subscriber base has grown from 400 in 2008 to 200 million today. In its fourth full...
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...Oklahoma State University Understanding Consumer Behavior Alex Urso DHM 1433 Final Paper Dr. Jane Swinney December 9th, 2013 Understanding consumer behavior is anything related to how people buy or select products and how the companies are meeting consumer needs. This is important to the field of merchandising and the design field because the consumers are what make a company successful. If a designer or a merchandiser does not understand their consumer their company will not flourish. Understanding consumer behavior can be described through material learned in this class, the textbook used and information from recent NRF Smartbriefs. In the first chapter of the textbook, In Fashion, the first principle of fashion is “consumers establish fashions by accepting or rejecting the styles offered”(Stone 24). It is false to say that designers design clothes with little regard for the acceptance of the designs. “The consumer is the ultimate user: the person who uses the finished fashion garment”(Stone 25). The designs that are made are specifically to please the consumer. With consumers having the power to reject styles and accept many styles, overall the consumer is who makes the style a fashion. “No designer can be successful without the support and acceptance of the customer”(Stone 24). Professionally, the designer has to know their target market in order to know what kind of consumers their design or company is going to attract. “Target markets are specific groups...
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...Logo………………………………………………………………………………….. 8 Awards……………………………………………………………………………….. 9 Internal Analysis……………………………………………………………………. 10-22 External Analysis…………………………………………………………………….23-36 Strategies…………………………………………………………………………… 36-53 References………………………………………………………………………….. 54-58 Executive Summary Groupon Humans are living in the digital age and technology has become crucial to the development of the world. Technology helps people in many positive ways, such as faster communication, easy access of vast quantities of information, and efficient, fast transportation. Therefore, businesses also benefit from technology. Technology helps companies to reach consumers fast and help to study the behavior of consumers when buying a product or service to create profit. Groupon uses technology to provide coupons to savvy consumers. Groupon is a company in the daily deals industry. The company provides daily deals online, usually provides coupons with a half price discount from local restaurants, bars, movie theaters, luxury hotels; helping other companies to attract customers by offering savings on things to eat, see, or do. Groupon is an international company; it operates in about 50 different countries. Groupon has approximately forty million active customers worldwide; furthermore, “its largest market is in the United States, followed by Canada and European countries. In fiscal 2011, the company earned about 50% of sales outside North America” (Hoovers, 2014). The company headquarters is located...
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...ENTREPRENEURIAL LEADERSHIP Steve Jobs once asked the question, “Why join the navy if you can be a pirate?” While some may argue that Apple more closely models that of the navy due to the company’s expansive size and presence, one can certainly argue that without the pirate that was Steve Jobs, Apple would not be what it is today. Steve Jobs may very well be one of the leading entrepreneurs of his time, but other distinguished individuals have also followed down similar paths to profits and social change. Entrepreneurs take different approaches in determining their path to success. Two such paths are the profit-oriented and social-responsibility oriented entrepreneurial approaches. Though similarities exist between both approaches, numerous differences do as well. Steve Jobs said, “Innovation distinguishes between a leader and a follower.” It is however, up to the entrepreneur to decide which path of innovation to forge. Tim O’Shaughnessy, founder of LivingSocial.com, is one such entrepreneur whose path to success followed that of the profit-oriented approach. “For-profit organizations focus on business goals, such as making money. Even when for-profit organizations become involved in social activities, their prime purpose is usually to make a profit” (Ruvio, Rosenblatt, & Hertz-Lazarowitz, 2010). According to their website, LivingSocial claims, “Innovation and imagination have made LivingSocial the fastest-growing company in the social-buying category...
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...Table of Contents I. SUMMARY EXECUTIVE ................................................................................................... 2 II. INTRODUCTION.............................................................................................................. 2 Definition and Benefits of Internet Marketing: .............................................................. 2 Types of Internet Marketing: ........................................................................................... 3 III. HOTDEAL VIETNAM AND ITS INTERNET MARKETING ACTIVITIES ........... 3 1.1 The factors that affect to the internet marketing of the chosen company: ................... 4 1.1.1 Macro-environment: ............................................................................................... 4 1.1.2 Micro-environment: ................................................................................................ 7 1.2 The marketing mix (7P) of Hotdeal Vietnam: ............................................................. 10 1.2.1 Product ................................................................................................................... 12 1.2.2 Promotion .............................................................................................................. 19 1.2.3 Price ........................................................................................................................ 26 1.2...
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...Collating data from the last two decades, the advent of increased internet penetration and the technology backing the rise of the mobile industry has had a transforming effect on the way we do business and communicate. E-commerce is by far a relatively new concept. The concept has recently gained fruition owing to the major strides being made in the computer and mobile industry and need for people to be able to communicate and do trivial jobs over the click of a button or the swipe of a finger. However, when talking statistics, while e-commerce has grown beyond measure in countries like US and China where they have achieved US 150 billion USD in revenue, India is still playing catch-up to what is being heralded as the next big thing in the retail sector. However, it is not to say that the industry hasn’t grown at all, with an increase of 35% CAGR from 3.8 billion USD in 2009 to an estimated 12.6 billion USD in 2013. Industry studies by IAMA2 reveals that online travel is by far the most prevalent of the e-business modules, taking over more than 70% of the total transactions in this domain. However, e-retail and marketplace are catching up fast, with studies in various research journals showing that there has been an estimated growth of 11%, from 10% in 2009 to 21% in 2014.The studies also throw light on the fact that Parcel Checkins have also increased by over 150 million in 2014, which, however, still stands at approximately 2% of India’s total retail market. As it...
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...CONSUMER ACCEPTANCE AND CONTINUANCE OF ONLINE GROUP BUyING WENG MARC LIM Monash University Selangor Darul Ehsan, Malaysia DING HOOI TING Universiti Teknologi Petronas Malaysia ABSTRACT The aim of this study is to establish and examine the significance of a consumer acceptance and continuance model for online group buying through the integration of entertainment gratification and perceived risk with the Technology Acceptance Model. A quantitative study was conducted and data were obtained through a mall-intercept systematic sampling distribution of questionnaires. The results indicate that perceived usefulness, perceived ease of use and perceived risk all have a significant relationship with consumer attitudes, which subsequently has a significant effect on intention to use online group buying sites. While entertainment gratification was found to be insignificant, we reveal some possible reasons for this finding. The implications of the findings and future research directions are also discussed. Keywords: online group buying; consumer acceptance and continuance. INTRODUCTION The rapid growth of information technology (IT), the Internet, and the e-commerce boom have created significant opportunities that are characterized by a lack of spatial boundaries [43]. Dawson [9] suggests that three particular types of IT investment have led retailers to become more profitable: (1) knowledgebased investments provide more creative ways to run enterprises; (2) alliance-based investments...
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...April 13 2014 Mr.David Morris Owner Dynamic Shine 8828 Heather St Vancouver BC, V6P 3S8 Dear Mr. Morris: We would first like to thank you for your cooperation and involvement in the development of your Digital and Social Media marketing plan. As per our first meeting we have included requested analysis of various aspects of Dynamic Shine. Dynamic Shine Prepared for: David Morris Prepared by: CT Consulting This report is consistent with our signed Academic Integrity Form on file with the instructor Trevor Burns Cameron Knowles CT Consulting ENTR 3311 S10 April 13 2014 Executive Summary David Morris took control of Dynamic Shine in 2010 and has since then grown the business to three profitable locations, with plans for more growth in the future. This report has analyzed the business for the purpose of making recommendation to increase online brand awareness and overall social media presence. The main advantage we found Dynamic Shine has over their competition is the quality of the service being provided. A detailed competitive analysis was done to determine which online activities the competition is partaking in and how this is directly impacting their company success. It was found that the competition was on the following digital platforms: twitter, instagram and facebook. Dynamic Shine must also partake in similar activities on all the most popular social media platforms. In respect to Dynamic Shine’s current website which we have concluded to be...
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...Instructor’s Manual: Chapter 2 E-commerce Business Models and Concepts Teaching Objectives • Identify the key components of e-commerce business models. • Describe the major B2C business models. • Describe the major B2B business models. • Explain the key business concepts and strategies applicable to e-commerce. Key Terms business model, p. 65 business plan, p. 65 e-commerce business model, p. 65 value proposition, p. 66 revenue model, p. 66 advertising revenue model, p. 67 subscription revenue model, p. 67 transaction fee revenue model, p. 67 sales revenue model, p. 67 affiliate revenue model, p. 67 market opportunity, p. 68 marketspace, p. 68 competitive environment, p. 72 competitive advantage, p. 72 asymmetry, p. 72 first-mover advantage, p. 73 complementary resources, p. 73 unfair competitive advantage, p. 73 perfect market, p. 73 leverage, p. 73 market strategy, p. 74 organizational development, p. 74 management team, p. 74 e-tailer, p. 78 barriers to entry, p. 78 community provider, p. 80 intellectual property, p. 81 content provider, p. 81 portal, p. 84 transaction broker, p. 85 market creator, p. 86 service provider, p. 86 e-distributor, p. 88 e-procurement firm, p. 88 B2B service provider, p. 89 application service provider (ASP), p. 89 scale economies, p. 89 exchange, p. 89 industry consortia, p. 90 private industrial networks, p. 90 industry structure, p. 93 industry structural analysis, p. 94 ...
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...from, and we use it to compare prices as well. Previously, consumers would see the advertisement and go to stores to find more about the product but with the advent of internet, consumers after watching the internet do more research on the product rather than going directly to the store. The moment consumers start researching about a product on their laptop or smart phone this is where the zero moment of truth begins. There are different ways of doing a research which include reading reviews, using social network and discuss about a brand, or follow a blog. Companies who are aware of this use this as a advantage and try to improve the reputation of their brand on the internet. In 2006, I decided to buy a dell desktop for personal use. I kept using it till its usage life got over. Then in 2008 I decided to buy another desktop and I got the same dell desktop again. But in 2013, when I wanted to a buy a new desktop, I just did not simply buy the same desktop again. This time I went online and compared different desktops. I saw the features of different desktops and did a cost benefit analysis. I used my facebook account to ask my friends which desktop would they buy if they were given a choice. I read different blogs to make sure the decision which I was making was correct. Once I made my mind I went to the best buy website and purchased the desktop. Unlike my previous purchases, I did not go to the store to make a purchase. Rather I did my own research and purchased the desktop without...
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...offending item for long periods. Big Skinny also promotes additional benefits from standard skinny wallets including the ability to secure items due to the rubber coating on the interior, and the durability to machine wash their wallets without causing damage. Big Skinny’ initial success was a result of the products and sales approach. They were able to develop a cool brand and engage directly with customers at fairs & festivals. This in-person selling technique enabled them to articulate the key features of their product in a way that customers understood, but the sales model was not sufficiently scalable to allow them to grow as fast as they wanted. However the direct approach was still effective to promote the brand, connect with the consumers, and gather their feedback for use in wider efforts. Their move to mass-market promotion was started with print advertising (billboards, postcards, & newspaper/ magazine ads) in key regional markets to increase brand exposure. These efforts created incremental success but did not generate enough demand to achieve the success they desired. The costs and management overhead to scale this off-line marketing campaign to a wider audience was prohibitive and an online strategy was seen as the path forward. Who Wants A Wallet? Wallets are typically bought on an...
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...that if in five years’ time a company is not using the Internet to do some or all of these things, it will be destroyed by competitors who are.” but five years on from then perhaps this statement didn’t come true but it certainly rings true in the current year of 2016 where so many businesses have since folded as a result of the rise of the ‘real life to internet’ movement. Internet marketing is important because it aligns with the way consumers make purchasing decisions and nearly every business will benefit from having an internet presence. Reaching customers—and potential customers—using online marketing is more a matter of commitment and strategy than it is a financial expenditure. It does not need to be expensive to reach online customers effectively. Using a market-led approach to Internet marketing, you can build an effective website and attract customers through various Internet-based marketing tactics. Internet marketing involves the use of digital media to inform the market of your business and to entice people to purchase your products and services. The internet (and, by extension, mobile) is merely a vehicle...
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